Chapter 5 Quiz 5

D

theory suggests that firms using FDI as an internationalization strategy must own or control certain resources and capabilities not easily available to competitors. Question 2 options: Absolute advantage Factor proportions Internalization Monopolistic advantage

D

According to the ________, a country benefits by producing only those products in which it has complete advantage or that it can produce using fewer resources than another country. Question 7 options: factor proportions theory international product cycle theory comparative advantage principle absolute advantage principle

D

The Gulf nations benefit economically from rich petroleum reserves in the region. This is an example of ________. Question 14 options: competitive advantage ownership-specific advantage cost advantage comparative advantage

C

The ________ is one of the three key modern perspectives that helps explain the development of national competitive advantage. Question 11 options: comparative advantage of nations factor proportions theory national industrial policy absolute advantage principle

B

Which of the following is an example of an ownership-specific advantage? Question 12 options: natural resources of the region where the firm operates the physical assets owned by a firm inexpensive capital low-cost labor

D

Which of the following is true about national industrial policy? Question 6 options: It underlines the demerits of rigorous educational systems at the precollege level. It explains why nations attempt to run a trade surplus. It demonstrates that what matters is not the absolute cost of production, but rather the relative efficiency with which two countries can produce the products. It is designed to create monetary and fiscal policies, such as low-interest loans, that provide a stable supply of capital for company investment needs.

?

Which of the following is true about the determinants of national competitive advantage? Question 5 options: Demand conditions describe the nation's position in factors of production, such as labor, natural resources, capital, technology, entrepreneurship, and know-how. Vigorous competitive rivalry among firms lowers national innovativeness. The presence of strong competitors in a nation adversely affects national competitive advantage. The presence of demanding customers pressures firms to innovate faster and produce better products

D

Which of the following statements would be supported by Michael Porter? Question 10 options: The presence of strong competitors in a nation hinders national competitive advantage. The presence of highly demanding customers discourages innovation. Economic prosperity depends primarily on inherited national advantages. Rivalry among industry competitors spurs innovation.

B

Which of the following was the analysis revealed by the "Leontief paradox"? Question 13 options: that despite having an abundant pool of labor, the U.S. was exporting capital-intensive goods that the U.S. often exported labor-intensive goods and imported more capital-intensive goods that international trade was simpler than perceived that contrary to the popular belief, new products are more likely to originate in developing economies

D

___ refers to the superior features of a country that provide unique benefits in global competition, typically derived from either natural endowments or deliberate national policies. A. Absolute advantage Competitive advantage Industrial cluster Comparative advantage

A

________ argues that increasing returns to scale, especially economies of scale, are important for superior international performance in industries that succeed best as their production volume increases. Question 3 options: New trade theory Cost-advantage theory Comparative theory Competitive theory

D

A proactive economic development plan initiated by the government, often in collaboration with the private sector, that aims to develop or support particular industries within the country is referred to as ________. Question 15 options: policy on national industrial relations national fiscal policy national endowment policy national industrial policy

A

Competitive advantage refers to the ________. Question 9 options: distinctive assets or competencies of a firm that are difficult for competitors to imitate and are typically derived from specific knowledge, capabilities, skills, or superior strategies belief that national prosperity is the result of a positive balance of trade, achieved by maximizing exports and minimizing imports relative absence of restrictions to the flow of goods and services between nations superior features of a country that provide unique benefits in global competition, typically derived from either natural endowments or deliberate national policies

C

In the ________ phase of international product life cycle theory, knowledge about how to produce the product is widespread and manufacturing becomes straightforward. Question 4 options: introduction temporary monopoly standardization maturity

C

In which of the following stages of the internationalization process is a firm preoccupied with business in its home market? Question 8 options: active involvement experimental involvement domestic focus pre-export