Mod 1-4 quiz questions

Why is the United States both an exporter and importer of such products and vehicles and passenger aircraft? -Buyers procure similar products for replacement parts -Companies differentiate products to appeal to different consumers -Transportation costs and cultural differences limit exporters -Bilateral trading agreements require the interchange for a number of products.

Companies differentiate products to appeal to different consumers

El Salvador has a population density of about 620 people per square mile and neighboring Honduras a population density of about 115 people per square mile. According to the factor proportions theory of trade, one would expect El Salvador's exports to Honduras to ________. -have a lower labor-to-land ratio than its imports from Honduras -have a higher labor-to-land ration that its imports from Honduras -embody more capital per square mile than its imports from Honduras -embody more capital per worker that its imports from Honduras

have a higher labor-to-land ration that its imports from Honduras.

What is one argument in support of globalization? -The process of globalization has enhanced the equalization of countries in terms of political and social economy. - globalization enhances access to health care for participants. -Free trade enhances socioeconomic development -Environmental issues are lessened through globalization

Free trade enhances socioeconomic development

Donna Bader spent her final year at college studying the effect of various economic factors on the economy of developing nations. Based on the results of her study, she concluded that globalization does these countries more harm than good. Which of the following statements, if true, strengthen Donna's argument? -because of the increase in employment opportunities, workers from developing countries flock to developed countries. -Many companies take advantage of lenient labor laws by setting up facilities in low-income countries. -people in low wage nations have high mortality rate and no access ti healthcare facilities. low-wage nations tend to have poorly developed transport and communication systems

Many companies take advantage of lenient labor laws by setting up facilities in low-income countries.

An example of a U.S. merchandise import is an automobile made in ________ and sold ________. -the United States by a Japanese company; outside the United States - Japan by a U.S. company; outside the U.S. -Japan by a Japanese company; in the United States -the United States by a Japanese company; in the United States

Japan by a Japanese company; in the United States

What is an example of an external force that represents financial factors affecting a business? -geographic location -interest rates -domestic laws -consumer opinion

interest rates

The forces over which management does have some command are called: -external -internal -domestic -foreign

internal

International trade includes exports, imports, and FDI -TRUE -FALSE

TRUE

The vast proportion of outward FDI, about 2/3s, originates from the developed countries -TRUE -FALSE

TRUE

Costa Rica applied the concepts of the diamond of national advantage theory to help transform its economy by ________. -following import substitution policies -building domestic demand for its products and services -looking globally to develop favorable conditions -concentration on nontradable goods

looking globally to develop favorable conditions

Which of the following is most likely a basis for a Jamaican natural advantage in international trade? -product technology developed by a Jamaican company -the use of English as a primary language -beautiful beaches and climate -high literacy rates among Jamaican citizens

beautiful beaches and climate

According to the product life cycle theory, production and sales are primarily domestic in the introductory stage because_____________. -international patents have not been approved -tariff reductions remain under negotiation -business need quick market feedback -international transport costs are too high

business need quick market feedback

An international business is defined as -organization with multicountry affiliates -organization engaged in domestic trade -businesses whose activities involve crossing national borders -organization that attempts to standardize operations worldwide.

businesses whose activities involve crossing national borders

Harrison Manufacturing, based in Toledo, recently purchased a new manufacturing facility and production equipment in Germany that it will use to produce component parts. This purchase is an example of -economies of scale -foreign direct investment -importing and exporting -intrastate commerce

foreign direct investment

The trade theory that says a country should export more than it imports known as_________. -import substitution -comparative advantage -mercantilism -absolute advantage

mercantilism

All of the following are features of the diamond national advantage theory EXCEPT________. -firm strategy, structure, and rivalry -strategic trade policy regulations -diamond conditions -related supporting industries

strategic trade policy regulations

Sanjay is the director of operations for Fresh Farm Produce Corp. and is now able to sell his product to the international market thanks to a new computer system that is specifically designed for businesses in the fresh food industry. Which driver helped Sanjay's company internationalize? -cost -technological -market -political

technological

Hamlin Millworks is frustrated with the lobbyists who are currently trying to influence Congress to raise taxes for all corporations in the wood products industry. In the environment of Hamlin Millworks, these lobbyists are an example of -a domestic environment -uncontrollable forces -a foreign environment -controllable forces

uncontrollable forces

According to the diamond of national advantage theory, the domestic existence of all four conditions best explains ________. -where globally competitive firms develop and sustain themselves. -the position of a product in its life cycle -the essence of an industry's development -why countries rely on abundant factor endowments

where globally competitive firms develop and sustain themselves.

The argument that free trade is the best strategy for advancing the world's economic development is considered -one that has very little support in research studies -one of the most contentious issues associated with economic globalization - a proposition with which almost all economists agree -the basis for much protectionist legislation in emerging markets.

a proposition with which almost all economists agree