Exam 9: International Factor Movements and Multinational Enterprises

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The United States has discouraged the "brain drain" problem by permitting the immigration of unskilled workers while restricting the immigration of skilled persons.

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Which of the following refers to the price charged for products sold to a subsidiary of a multinational enterprise by another subsidiary in another nation?

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By establishing transplant factories in the United States,Japanese automakers were able to avoid export restrictions imposed by the Japanese government,but not import restrictions imposed by the U.S.government.

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What are guest workers?

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Multinational enterprises may provide benefits to their source (home)countries because they may:

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The operations of an MNE have little effect on employment in either the host country or the home country.

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Foreign direct investment would occur if Microsoft Inc.of the United States purchased securities of the French government.

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Most vertical foreign investment,as implemented by multinational corporations,is "forward" in nature rather than "backward."

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In natural-resource oriented industries,such as oil and copper,joint ventures have often been formed by several companies since the cost of resource-extraction may be prohibitively large for a particular company.

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Multinational enterprises face problems since they:

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Conglomerate integration would occur if General Motors Inc.of the United States acquired a controlling interest in a British chemical company.

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A joint venture leads to increases in national welfare if the cost-reduction effect is due to wage concessions and if it more than offsets the market-power effect.

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  -Consider Figure 9.3.If Honduran migration to Mexico results in the labor force increasing to 12 workers,denoted by schedule S<sub>1</sub>,the: -Consider Figure 9.3.If Honduran migration to Mexico results in the labor force increasing to 12 workers,denoted by schedule S1,the:

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Figure 9.1.International Joint Venture Figure 9.1.International Joint Venture   -Consider Figure 9.1.With Sony Company and American Company behaving as competitors,the equilibrium price and output respectively equal: -Consider Figure 9.1.With Sony Company and American Company behaving as competitors,the equilibrium price and output respectively equal:

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Suppose General Motors charges its Mexican subsidiary $1 million for auto assembly equipment that could be purchased on the open market for $800,000.This practice is best referred to as:

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What are the disadvantages of forming joint ventures?

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Foreign-owned companies in the United States operate under more strict antitrust,environmental,and other regulations than U.S.-owned companies.

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Figure 9.2.U.S.Labor Market Figure 9.2.U.S.Labor Market   -Consider Figure 9.2.As the result of the Mexican migration to the United States: -Consider Figure 9.2.As the result of the Mexican migration to the United States:

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Canada views immigrants as:

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American labor unions have recently maintained that U.S.multinational enterprises have been:

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