Exam 3: The Theory of Trade and Investment

The overlapping product ranges described by Linder would today be called:

The first choice in the foreign direct investment decision is whether to:

During the age of Mercantilism,governments identified strength with the accumulation of specie,or gold and silver.

___________ refers to self sufficiency during feudal times.

____________ is the establishment or expansion of operations of a firm in a foreign country.

According to the theory of foreign direct investment,firms that expand across borders may be seeking all of the following EXCEPT:

Describe the stages of the product cycle.

Which determinant of national competitive advantage involves conditions in the home-nation that either hinder or aid in the firm's creation and sustaining of international competitiveness?

Examples of ___________ considerations in the strategic trade theory include the willingness to subsidize workers' education or protecting the industry from foreign competition.

The larger the firm,the lower the cost per unit. This is a principle of:

Firms interested in acquiring access to linseed oil from Indonesia are seeking:

Adam Smith explains that industrial societies can increase output using the same labor-hours as in preindustrial society through:

________ is the political and economic policy of the 17th and early 18th centuries aimed at increasing a nation's wealth and power by encouraging the export of goods in return for gold.

____________ occurs when a firm establishes its own multinational operation,keeping information that is at the core of its competitiveness within the firm.

At a large zipper factory in China,there is an assembly line of workers. One worker prepares the metal for melting,another sets the molds,a third pours the metal,a forth takes it to the curer,a fifth does quality control,and a sixth packages the zippers for shipment. Through this process,the factory can make thousands of zippers per day. This procedure is best described as:

Even if one country was most efficient in the production of two products,it must be relatively more efficient in the production of one good. It should then specialize in the production and export of that good in exchange for the importation of the other goods. This describes the:

__________ occurs when a firm establishes its own multinational operation,keeping information that is at the core of its competitiveness within the firm.

Gold and silver were the primary needs of feudal societies living in a state of autarky.

Internalization occurs when a firm establishes its own multinational operation,keeping information that is at the core of its competitiveness within the firm.

By encouraging domestic production of goods formerly imported,countries are exploiting imperfections in factor mobility.