Exam 9: International Factor Movements and Multinational Enterprises

Suppose that an American automobile manufacturer establishes foreign subsidiaries to market the automobiles.This practice is referred to as:

There is virtually universal agreement among economists that foreign direct investment in the United States has reduced the economic welfare of the average U.S.citizen.

In the United States,labor unions have generally resisted efforts to implement restrictions on the number of foreigners allowed into the country.

American labor unions accuse U.S.multinational firms of all of the following except: that such firms

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

Horizontal integration would occur if General Motors sets up a subsidiary in Mexico to produce automobiles identical to those that it produces in the United States.

The ______ refers to the price charged for goods sold to a subsidiary of a multinational enterprise by another subsidiary in another country

Which of the following is not a significant motive for the formation of multinational enterprises?

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

The "brain drain" is

Canada currently solicits immigrants from some 200 countries of origin,with Mexico,El Salvador,and the Honduras being the most important contributors.

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

Critics of multinational corporations maintain that they often abandon domestic workers in order to take advantage of lower wage scales abroad.

The source (home) location of most of the world's leading multinational enterprises is:

Figure 9.1 illustrates the market conditions facing Sony Company and American Company 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.With Sony Company and American Company behaving as competitors,the equilibrium price and output respectively equal:

Developing countries,such as Mexico and India,often close their borders to foreign companies unless they are willing to take on partner companies in developing countries.

During the 1980s and 1990s,Japanese auto firms established manufacturing facilities in the United States known as "transplants."

During the 1970s,American oil companies acquired nonenergy companies (e.g.,copper,auto components) in response to anticipated decreases in investment opportunities in oil.This type of diversification is referred to as:

Royal Dutch Shell,Walmart Stores,and ExxonMobil are among the world's smallest corporations in recent years.

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.