Chapter 4 International business
According to Adam Smith, the party which can produce more of a good or service than competitors while using the same amount of resources, is said to have:
Absolute advantage
Suppose you, as an American company, started a phone business in India. Which of the following cultural barriers might you face?
All of these answers ( Ignorance of emerging markets, Transaction complexity, Market entry)
Tariffs are often viewed by economists to be bad for overall welfare because:
All of these answers ( Tariffs hurt the developing world, Tariffs limit choices for products, Tariffs are anti-poor)
Which of the following is NOT a benefit of contract manufacturing?
Complete control of production
Assuming the US is efficient in growing corn and therefore sells is to other countries. We call this:
Exporting
The term balance of trade incorporates the measure of which of the following?
Imports and Exports
The reasoning behind the creation of the Euro can best be explains as a means to:
Integrate the European countries
Which of the following is NOT true about NAFTA?
NAFTA helps the US, but harms Mexico
One of the downsides of outsourcing for a company is that it:
Reduces confidentiality
The most significant update to the GATT in 1993 was:
The establishment of the WTO
The one reason MNC can be harmful for the host country is:
They obtain strong negotiating power with local government
The ethical argument against international trade can best be explained as an increase in international trade leading to:
A disproportionate advantage to capital owners
The Bogor Goals adopted in 1994 called for:
All of these answers (Open investment in Asia-Pacific, Free and open trade in Asia-Pacific for developing economies, Free and open trade in Asia-Pacific for industrialized economies)
In order to be a successful joint venture, both parties must be equally invested in a project in terms of:
All of these answers(Money, Time, Effort)
The theory of competitive advantage can best be explained as suggesting that:
Businesses create high-quality goods to sell at high prices in the market