Question 1

The strategic trade theory is criticized because _____.

Accepted Answer

A)  many industries claim that they are strategically important 
B)  the government does not intervene when necessary 
C)  the theory claims that the United States will always have a strategic advantage in terms of innovation 
D)  stage-by-stage migration of production takes several years 
A)  many industries claim that they are strategically important 
B)  the government does not intervene when necessary 
C)  the theory claims that the United States will always have a strategic advantage in terms of innovation 
D)  stage-by-stage migration of production takes several years A

Question 2

The product life cycle theory is criticized because _____.

Accepted Answer

A)  it assumes that absolute and comparative advantages stem from different factor endowments 
B)  it assumes that China is absolutely inefficient than the United States in the production of both wheat and aircrafts 
C)  it argues that by trying to be self-sufficient and producing a wide range of goods,the wealth of a nation is reduced. 
D)  it assumes that a stage-by-stage migration of production takes at least several years,if not decades 
A)  it assumes that absolute and comparative advantages stem from different factor endowments 
B)  it assumes that China is absolutely inefficient than the United States in the production of both wheat and aircrafts 
C)  it argues that by trying to be self-sufficient and producing a wide range of goods,the wealth of a nation is reduced. 
D)  it assumes that a stage-by-stage migration of production takes at least several years,if not decades D

Question 3

_____ are government payments to domestic firms.

Accepted Answer

A)  Import quotas 
B)  Subsidies 
C)  Voluntary export restraints 
D)  Local content requirements 
A)  Import quotas 
B)  Subsidies 
C)  Voluntary export restraints 
D)  Local content requirements B

Question 4

Resource mobility is not perfect in reality,and there are many resources that cannot easily be moved from one industry to another.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is true of the theory of absolute advantage?

Accepted Answer

A)  It was advocated by British economist David Ricardo. 
B)  It opened the floodgates for the free trade movement. 
C)  It suggests that international trade is a zero-sum game. 
D)  It is more realistic and useful than comparative advantage when applied in the real world. 
A)  It was advocated by British economist David Ricardo. 
B)  It opened the floodgates for the free trade movement. 
C)  It suggests that international trade is a zero-sum game. 
D)  It is more realistic and useful than comparative advantage when applied in the real world.

Question 6

The Wealth of Nationsby Adam Smith,published in 1776,is usually considered the foundation of modern economics.

Accepted Answer

A) True 
 B)False

Question 7

Tariff barriers include subsidies,import quotas,export restraints,local content requirements,administrative policies,and antidumping duties.

Accepted Answer

A) True 
 B)False

Question 8

According to the resource-based view,there are economic gains from international trade because some firms in one nation generate exports that are valuable,unique,and hard to imitate that firms from other nations find it beneficial to import.

Accepted Answer

A) True 
 B)False

Question 9

_____ is the assumption that a resource used in producing for one industry can be shifted and put to use in another industry.

Accepted Answer

A)  Resource dependence 
B)  Resource necessity 
C)  Resource mobility 
D)  Resource endowment 
A)  Resource dependence 
B)  Resource necessity 
C)  Resource mobility 
D)  Resource endowment

Question 10

Discuss the determinants of the success and failure of a firm's exports around the globe.

Accepted Answer

The success of a firm's exports around t

Question 11

Compare and contrast absolute advantage and comparative advantage trade theories.

Accepted Answer

The economic advantage one nation enjoys

Question 12

A nation that is more efficient than anyone else in the production of any good or service is said to have a comparative advantage in the production of that good or service.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements is true of import quotas?

Accepted Answer

A)  They are the most straightforward denial of absolute or comparative advantage. 
B)  They are government payments to domestic firms. 
C)  They are rules stipulating that a certain proportion of the value of the goods made in one country must originate from that country. 
D)  They are bureaucratic rules that make it harder to import foreign goods. 
A)  They are the most straightforward denial of absolute or comparative advantage. 
B)  They are government payments to domestic firms. 
C)  They are rules stipulating that a certain proportion of the value of the goods made in one country must originate from that country. 
D)  They are bureaucratic rules that make it harder to import foreign goods.

Question 14

Monitoring and nurturing the absolute advantage of certain locations can determine the success and failure of a firm's exports around the globe.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements is true of trade surplus?

Accepted Answer

A)  It occurs when a nation only imports goods and services. 
B)  It occurs when a nation imports goods and services more than it exports. 
C)  It occurs when a nation only exports goods and services. 
D)  It occurs when a nation exports goods and services more than it imports. 
A)  It occurs when a nation only imports goods and services. 
B)  It occurs when a nation imports goods and services more than it exports. 
C)  It occurs when a nation only exports goods and services. 
D)  It occurs when a nation exports goods and services more than it imports.

Question 16

According to the institution-based view,why do nations benefit from international trade?

Accepted Answer

A)  Because some firms in one nation generate exports that are valuable,unique,and hard to imitate that firms from other nations find it beneficial to import. 
B)  Because governments actively protect domestic industries from imports and vigorously promote exports. 
C)  Because different rules governing trade are designed to determine how economic gains from international trade are shared. 
D)  Because the wealth of the world (measured in gold and silver)is fixed and a nation that exports more than it imports will enjoy the net inflows of gold and silver and become richer. 
A)  Because some firms in one nation generate exports that are valuable,unique,and hard to imitate that firms from other nations find it beneficial to import. 
B)  Because governments actively protect domestic industries from imports and vigorously promote exports. 
C)  Because different rules governing trade are designed to determine how economic gains from international trade are shared. 
D)  Because the wealth of the world (measured in gold and silver)is fixed and a nation that exports more than it imports will enjoy the net inflows of gold and silver and become richer.

Question 17

Managers who fail to realize when a location no longer has a _____ are likely to fall behind.

Accepted Answer

A)  comparative advantage 
B)  absolute advantage 
C)  economic advantage 
D)  first-mover advantage 
A)  comparative advantage 
B)  absolute advantage 
C)  economic advantage 
D)  first-mover advantage

Question 18

Which of the following is a difference between merchandise trade and service trade?

Accepted Answer

A)  Merchandise trade takes place only between a firm and a consumer,whereas service trade takes place only between a producer and a consumer. 
B)  Merchandise trade includes services and foreign direct investment,whereas service trade includes only trade in goods. 
C)  Merchandise trade is the buying and selling of tangible products,whereas service trade is the buying and selling of intangible services. 
D)  Merchandise trade is defined by the Four Modes of Supply of the General Agreement on Trade in Services (GATS),whereas service trade is defined by the Four Modes of Demand of the GATS. 
A)  Merchandise trade takes place only between a firm and a consumer,whereas service trade takes place only between a producer and a consumer. 
B)  Merchandise trade includes services and foreign direct investment,whereas service trade includes only trade in goods. 
C)  Merchandise trade is the buying and selling of tangible products,whereas service trade is the buying and selling of intangible services. 
D)  Merchandise trade is defined by the Four Modes of Supply of the General Agreement on Trade in Services (GATS),whereas service trade is defined by the Four Modes of Demand of the GATS.

Question 19

A(n)_____ is a government payment to a domestic firm.

Accepted Answer

A)  embargo 
B)  subsidy 
C)  tariff barrier 
D)  business payment 
A)  embargo 
B)  subsidy 
C)  tariff barrier 
D)  business payment

Question 20

China is able to produce wheat relatively less inefficientlythan it is able to produce aircraft.By letting China specialize in the production of wheat an importing some wheat from China,the United States is able to devote its resources to aircraft.In this example,the United States is:

Accepted Answer

A)  utilizing strategic government intervention 
B)  gaining first-mover advantage 
C)  leveraging absolute advantage 
D)  leveraging comparative advantage 
A)  utilizing strategic government intervention 
B)  gaining first-mover advantage 
C)  leveraging absolute advantage 
D)  leveraging comparative advantage

The strategic trade theory is criticized because _____.

The product life cycle theory is criticized because _____.

_____ are government payments to domestic firms.

Resource mobility is not perfect in reality,and there are many resources that cannot easily be moved from one industry to another.

Which of the following statements is true of the theory of absolute advantage?

The Wealth of Nationsby Adam Smith,published in 1776,is usually considered the foundation of modern economics.

Tariff barriers include subsidies,import quotas,export restraints,local content requirements,administrative policies,and antidumping duties.

According to the resource-based view,there are economic gains from international trade because some firms in one nation generate exports that are valuable,unique,and hard to imitate that firms from other nations find it beneficial to import.

_____ is the assumption that a resource used in producing for one industry can be shifted and put to use in another industry.

Discuss the determinants of the success and failure of a firm's exports around the globe.

Compare and contrast absolute advantage and comparative advantage trade theories.

A nation that is more efficient than anyone else in the production of any good or service is said to have a comparative advantage in the production of that good or service.

Which of the following statements is true of import quotas?

Monitoring and nurturing the absolute advantage of certain locations can determine the success and failure of a firm's exports around the globe.

Which of the following statements is true of trade surplus?

According to the institution-based view,why do nations benefit from international trade?

Managers who fail to realize when a location no longer has a _____ are likely to fall behind.

Which of the following is a difference between merchandise trade and service trade?

A(n)_____ is a government payment to a domestic firm.

China is able to produce wheat relatively less inefficientlythan it is able to produce aircraft.By letting China specialize in the production of wheat an importing some wheat from China,the United States is able to devote its resources to aircraft.In this example,the United States is:

Globalizing Business

Understanding Politics Laws Economics

Emphasizing Cultures Ethics Norms

Leveraging Resources Capabilities

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing On Global Regional Integration

Growing Internationalizing The Entrepreneurial Firm

Entering Foreign Markets

Making Alliances Acquisitions Work

Strategizing Structuring Learning Around The World

Managing Human Resources Globally

Competing On Marketing and Supply Chain Management

Managing Corporate Social Responsibility Globally

Filters

Exam 5: Trading Internationally

The strategic trade theory is criticized because _____.

The product life cycle theory is criticized because _____.

_____ are government payments to domestic firms.

Resource mobility is not perfect in reality,and there are many resources that cannot easily be moved from one industry to another.

Which of the following statements is true of the theory of absolute advantage?

The Wealth of Nationsby Adam Smith,published in 1776,is usually considered the foundation of modern economics.

Tariff barriers include subsidies,import quotas,export restraints,local content requirements,administrative policies,and antidumping duties.

According to the resource-based view,there are economic gains from international trade because some firms in one nation generate exports that are valuable,unique,and hard to imitate that firms from other nations find it beneficial to import.

_____ is the assumption that a resource used in producing for one industry can be shifted and put to use in another industry.

Discuss the determinants of the success and failure of a firm's exports around the globe.

Compare and contrast absolute advantage and comparative advantage trade theories.

A nation that is more efficient than anyone else in the production of any good or service is said to have a comparative advantage in the production of that good or service.

Which of the following statements is true of import quotas?

Monitoring and nurturing the absolute advantage of certain locations can determine the success and failure of a firm's exports around the globe.

Which of the following statements is true of trade surplus?

According to the institution-based view,why do nations benefit from international trade?

Managers who fail to realize when a location no longer has a _____ are likely to fall behind.

Which of the following is a difference between merchandise trade and service trade?

A(n)_____ is a government payment to a domestic firm.

China is able to produce wheat relatively less inefficientlythan it is able to produce aircraft.By letting China specialize in the production of wheat an importing some wheat from China,the United States is able to devote its resources to aircraft.In this example,the United States is:

Globalizing Business

Understanding Politics Laws Economics

Emphasizing Cultures Ethics Norms

Leveraging Resources Capabilities

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing On Global Regional Integration

Growing Internationalizing The Entrepreneurial Firm

Entering Foreign Markets

Making Alliances Acquisitions Work

Strategizing Structuring Learning Around The World

Managing Human Resources Globally

Competing On Marketing and Supply Chain Management

Managing Corporate Social Responsibility Globally

Filters