Exam 17: Global Business

-The above figure shows the market for rice in Japan. S2 represents the domestic supply curve, and S1 represents the world supply curve. Suppose a free market exists. The smallest tariff necessary to completely eliminate imported rice is

According to the mini-case on the Barbie Doll, Mattel is successful because

If a currency such as the US$ is traded in a competitive market, a(n)________ in demand for the US$ ________ the price of the US$ in terms of another currency such as the Japanese Yen (¥).

A pollution haven is

Creating market power through the use of tariffs or quotas can

A trade policy that protects domestic producers from certain actions taken by foreign governments or firms is

Your U.S.-based company is selling parts to a company in Chile and the company will pay you US$10,000 in 3 months. The current exchange rate is 490 pesos/US$. If the exchange rate at the time of payment is 510 pesos/US$

If the U.S. can produce pizza for $5 each and barrels of beer for $25 each, and Germany can produce pizza for $7 each and barrels of beer for $21 each, then the U.S.

If an Albanian company hires a U.S.-based law firm, it is

Your U.S.-based company is selling parts to a company in Bangladesh. If you require payment in US$

Which of the following is likely to decrease the exchange rate of Yen to euros (¥/€)?

Outsourcing generally results from

-The above figure shows the market for rice in Japan. S2 represents the domestic supply curve, and S1 represents the world supply curve. If imported rice is banned, the loss in social welfare is

International price discrimination for a good is possible if

One of the major effects of trade liberalization has been

An exchange rate is

If a bottle of fine French wine costs US$250 in the U.S., 2500 rand in South Africa, there are no transaction costs, and the exchange rate is 10 rand/US$, then

Your U.S.-based company is doing business internationally. One way to mitigate exchange rate risk is to

A multinational enterprise is defined as a company that

Compared to free trade, a ban on imports of a good