international business test 2
nationalization
CADE International has foreign operations in Taiwan, India, and China. The Firm pays an annual insurance premium to the overseas private Investment corporation. The firm is most likely protecting itself from
wealthier, westernized countries
Christopher Electronics plans to expand into foreign markets. Top executives want the firm to focus only on locations where the rule of law prevails. Which of the following should most likely be considered by Christopher?
usage of the most abundant factors of production, while the focus of the comparative advantage theory is on the productivity of the production process
Factor proportions Theory differs from the theory of comparative advantage in that the focus of factor proportions theory is on the blank
encourage MNEs to increase production activities in a country
Local content regulations are primarily intended to ________.
mercantilism
Nations following the theory of ____ believed that the world's wealth was limited and that a nation could increase its share of the pie only at the expense of its neighbors
developing countries
Nations having the poorest infrastructures in the lowest personal incomes are called
Australia
Rockwall Enterprises is planning to expand the firm by establishing operations outside of the US in which of the following countries would Rockwell most likely be able to establish operations most quickly?
a centrally planned economy to a free market economy
Russia is transitioning from
purchasing Capital Equipment outright
SJE Enterprises, a global firm, operates a facility in Angola. managers want to reduce the firm's vulnerability to political risk in Angola. All of the following actions would most likely accomplish this task except
the cost of living in the country is lower than that of France
The GDP per capita of a country is lower than that of France. If the GDP per capita of the country is adjusted for PPP, the country's revised GDP is higher than that of France. Which of the following is most likely true about the country?
dumping
____ can occur when a firm sells its goods in a foreign market at a price below what it charges in its Home Market
currency controls
____ make it more difficult for importers of non-essential Goods to acquire foreign exchange
cultural imperialism
____ refers to the unwanted cultural influence in the nation that can cause great distress and Lead governments to block Imports it believes to be harmful
purchasing power
____is the value of goods and services that can be purchased with one unit of a country's currency
specific
a ___ (or duty) is levied as a particular fee for each unit of an imported product
embargo
a ___ is an absolute ban of the exporting and importing of goods to a particular destination
compound
a ___ tariff (or duty) is leveled on an imported product and calculated partly as a percentage of its stated price and partly as a specific fee for each unit
foreign trade zone
a ____ is a geographic area where imported or exported Goods receive preferential tariff treatment
embargo
a ____ is an absolute ban on the exporting and importing of goods to the particular destination
countervailing Duty
a ____ is calculated to offset the advantage an exporter receives from a subsidy
newly industrialized country n i c
a country that has recently increased the portion of its national production and exports derived from industrial operations is called
comparative advantage
a products components are manufactured in a country that can produce them at a very low cost will maintaining its quality. These components are then assembled in another country where productivity in assembly is high. This process resembles a theory of
promoting exports to enlarge gold and silver holding
according to mercantilism, what should a country's primary goal be?
technological infrastructure in the nation
according to the porter diamond, which of the following is an example of an advanced Factor?
Syria
an individual from a country with a high degree of political risk would most likely be from
labor
both absolute and comparative advantage theories assume that____ is the only resource used in the production process
voluntary export restraint
countries might impose a ___ in response to the treatment of an import quota or total ban on a product by an importing Nation
new product stage
during which of the following stages of the international product life cycle Theory does high purchasing power and buyer demand in an industrialized Nation encourage a company to design and introduce a product concept?
manufacturing product stage
during which stage of the international product life cycle Theory does demand rise and remain sustained for a fairly lengthy period of time?
centrally planned to free market economies
economic transition is the process of moving from
transference of ownership from private to public sectors with compensation to private owners for their losses
expropriation is the best defined as the
implies that the national government exerts minimal influence on the exporting and importing decisions of private firms
free trade ___
expropriation
had the government taken over (with compensation) the assets of global trading but not those of any other company, the government's actions would be an example of
Afghanistan
has one of the highest levels of macro political risk
confiscation
has the government taken over the assets of global trading without compensation, and not taken over the assets of any other company, the government's actions would be an example of
standardized product stage
in the____ of the international product life cycle, competition from other companies selling similar products pressures companies to lower prices in order to maintain sales levels
standardized product stage
in which stage of the international product life cycle does the innovating firms country become a net importer of the product?
political risk
is the chance that political forces may change a country's business environment in ways that lead investors to lose some or all of the value of their Investments or be forced to accept a lower than projected rate of return
trade protectionism may make it difficult for a company to buy what it needs from foreign suppliers
managers should understand the effect of trade protectionism because
manufactured goods
most of the world's merchandise trade is composed of trade in
settle trade disputes among its members
one of the main goals of the World Trade Organization is to
trade surpluses
one of the major pillars upon which the practice of mercantilism rested was
administrative delays
regulatory controls or bureaucratic rules designed to impair the rapid flow of imports into a country are called
it cost more to buy everyday Goods in the country than in Thailand
the GDP per capita of a country is higher than that of Thailand. If the GDP per capita of the country is adjusted for PPP, the country's revised GDP is lower than that of Thailand. Which of the following is most likely true about the country?
smoot-hawley Act
the ___ altered the US trade policy from a stance of free trade to one of protectionism in the 1930s
International product life cycle
the ___ theory states that a country's export eventually becomes
a trade deficit
the condition that results when the value of a country's Imports is greater than the value of its exports is called
political turmoil in a country might affect all dependent countries
the danger of trade dependency is that
production and exporting Goods using the factors of production that are most abundant
the focus of factor proportions theory is on the
examining the volume of its trade relative to its total output
the importance of trade for a nation can be measured by
manufactured goods
the international product life cycle theory was put forth for
gross domestic product GDP
the measure of the value of production that occurs within a country's borders without regards to whether the production is done by domestic or foreign factors of production is its _____
import
the most common tariffs used today are the ___ tariffs
Factor proportions
the new trade theory is mainly at odds with the ___ Theory
purchasing power parity
the relative ability of two countries currencies to buy the same basket of goods in those two countries is called ______
government restrictions and competitive support actions to affect trade flows
the term protectionism, when applied to International Trade, refers to
Zero Sum game
the theory of absolute Advantage destroys the mercantilist idea that International trade is a
living standards of its people
the theory of absolute Advantage measures the nation's wealth by determining the
economic nationalism
today, country seen by others is trying to maintain a trade surplus and expand their National Treasures at the expense of other nations are accused of practicing
developing countries
using tariffs to generate government revenue is most common among
the theory of comparative advantage
watch production in the world today closely resembles what is predicted by the
positive-sum game
when there are gains to be had by both countries that are partly to an exchange, international trade is considered a
absolute advantage
which Theory suggests that a country should export those goods and services for which it is more productive than others an import those goods and services for which other countries are more productive?
Factor conditions
which element of national competitive Advantage Theory divides resources into two groups: basic and advanced?
export-import Bank
which of the following Financial companies in the US is involved in activities of selling of goods abroad, and offers Insurance on foreign accounts receivable?
companies required to hire local Personnel might be forced to take on inadequately trained workers
which of the following is a disadvantage of local requirement laws to foreign companies?
environmental degradation
which of the following is a major obstacle to economic transition?
local content requirements
which of the following is a method of restricting trade?
companies become more reliant on protection
which of the following is a result of the protection of domestic companies from International competition?
there are gains to be made from specialization and increasing economies of scale
which of the following is an argument offered by the new trade Theory?
maximization of production and consumption
which of the following is an assumption made by comparative advantage Theory?
ad valorem tariff
which of the following is an import tariff
exposure of I agribusiness to Market forces
which of the following is prompting farmers in many developed Nations to discover new ways to manage risk and increase agricultural efficiency?
the theory emphasizes that Nation should open their doors to trade so that people can obtain more Goods at cheaper rates
which of the following is true about the theory of absolute Advantage?
they help domestic producers maintain their market shares and prices
which of the following is true of quotas?
it is difficult for governments to identify the industry's worth protecting
which of the following is true regarding the protection of infant industries from International competition?
human development index
which of the following measures the extent to which a government equitably provides its people with a long and healthy life, an education, and a decent standard of living?
passive political risk management discourages managers from fully or partially hedging their bets against exposure to political hazards
which of the following statements about approaches to political risk management is not true
they served as a source of military protection
which of the following statements is incorrect with regards to the importance of colonies for mercantilist Nations?
unwanted cultural influence in a nation can cause governments to block Imports that it believes to be harmful
which of the following statements is true about cultural influences?
political risk is a major deterrent for companies that want to invest abroad
which of the following statements is true about the political risk in a Global Marketing environment?
governments May promote exports by offering loan guarantees
which of the following statements is true of export financing?
if forces companies from other countries to employ a local resources in their productionprocesses
which of the following statements is true of local content requirements?
marketers use GDP or GNP figures to determine whether a country's population is wealthy enough to purchase its product
which of the following statements is true of national production?
barter
which of the following terms is used to refer to the exchange of goods and services for other goods and services instead of money?
gross national product GNP
which of the following terms refers to the broadest measure of economic development of a country?
reduced utility rate
which of the following would most likely be used as a subsidy to entice firms to locate or expand facilities in a particular community?
confiscation
which results in a loss of assets, without compensation?
