Exam 9: International Factor Movements and Multinational Enterprises

What are the key elements underlying Canada's immigration policy?

Apple develops new iPhones in the United States but builds them overseas.Which type of integration is this?

Forward vertical integration would occur if a U.S.automobile manufacturer acquired a German subsidiary.

Most multinational corporations have a low ratio of foreign sales to total sales, usually 5 percent or less.

Figure 9.3 Figure 9.3 represents the Mexican labor market. Assume that labor and capital are the only factors of production. Also assume the initial supply schedule of labor is denoted by S0 and consists entirely of native Mexican workers. The demand schedule of labor is denoted by DMexico. -Consider Figure 9.3.At labor market equilibrium, the income earned by Mexican capital owners equals

Which of the following BEST refers to the outright construction or purchase abroad of productive facilities, such as manufacturing plants, by domestic residents?

Research conducted by the National Bureau of Economic research suggests that, while in the _________immigration lowers average wages, in the ___________wages________.

About two thirds of Canada's permanent visas are granted for Canada's economic needs, such as the filling of labor shortages.In contrast, about two thirds of U.S.green cards are granted for family reasons.

Suppose a U.S.CEO wants to expand her firm's manufacturing production.She argues it should occur in another country, because U.S.wages are 15 percent higher.Which of the following will refute her argument?

Most Japanese auto assembly plants located in the United States are located in southern states such as Texas, Alabama, and Tennessee.

Which of the following is an example of a cost motive for the formation of multinational enterprises?

Figure 9.2 represents the U.S. labor market. Assume that labor and capital are the only factors of production. Also assume the initial supply schedule of labor is denoted by S0 and consists entirely of native U.S. workers. The demand schedule of labor is denoted by D0. ? ? -Consider Figure 9.2.Policies that permit Mexican workers to freely migrate to the United States would likely be resisted by

Foreign direct investment typically occurs when

Trade analysis involving multinational enterprises DIFFERS from our conventional trade analysis in that multinational enterprise analysis emphasizes

Figure 9.1 illustrates the market conditions facing SKF and Timken, initially operating as competitors in the domestic ball bearing market. Each firm realizes constant long-run costs, MC₀=AC₀. Figure 9.1. International Joint Venture -Consider Figure 9.1.Assume Venture Company's formation yields new cost reductions, indicated by MC₁=AC₁, which result from technological advances.Compared to the original competitive equilibrium, the net effect of Venture Company's formation on welfare now is

Multinational enterprises face problems since they

Figure 9.2 represents the U.S. labor market. Assume that labor and capital are the only factors of production. Also assume the initial supply schedule of labor is denoted by S0 and consists entirely of native U.S. workers. The demand schedule of labor is denoted by D0. ? ? -Consider Figure 9.2, at labor market equilibrium, _____ workers are hired at a wage rate of $____ per hour, while total labor income equals $____.

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

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

Suppose that Samsung's production costs are the same in both China and India.Also suppose that Samsung can produce cellphones in China for an average cost of $10 per phone for 300 million phones, $12 per phone for 200 million phones, and $15 per phone for 100 million phones.If customers in India demand 100 million phones and customers in China demand 200 million phones, Samsung's lowest cost option is to