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134) Explain the methods of restricting and promoting foreign direct

  134) Explain the methods of restricting and promoting foreign direct investment that home and host countries can use.   135) Explain the view of the "eclectic theory" of FDI regarding when FDI will be undertaken. How might a host country offer incentives to attract FDI?       .
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134) Explain the methods of restricting and promoting foreign direct
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91) GMI's subsidiary for component B in Thailand can be

    91) GMI's subsidiary for component B in Thailand can be best described as a(n) ________. A) greenfield investment B) acquisition C) portfolio investment D) merger   92) GMI's company purchase in Brazil and subsidiary construction in Thailand would appear in which of the following? A) Current account of the United States B) Capital account of the World Trade.
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91) GMI's subsidiary for component B in Thailand can be
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1) Many early trade theories were created at a time

1) Many early trade theories were created at a time when most factors of production either could not be moved or could not be moved easily across national borders.   2) Factors of production include things such as labor, financial capital, capital equipment, and land or natural resources.   3) Today, all factors of.
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1) Many early trade theories were created at a time
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71) Which of the following records transactions involving the export

  71) Which of the following records transactions involving the export of services? A) Income receipts account B) Capital account C) Income payments account D) Current account   72) Which of the following is NOT recorded in the capital account? A) U.S. private assets B) U.S. official reserve assets C) Foreign official assets D) Unilateral transfers   73) Exports and imports of tourism.
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71) Which of the following records transactions involving the export
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104) Protecting companies from international competition often results in consumers

  104) Protecting companies from international competition often results in consumers paying ________ for products because of less competition.   105) ________ is the unwanted cultural influence in a nation that can cause great distress and cause governments to block imports it believes to be harmful.   106) Financial assistance to domestic producers in the.
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104) Protecting companies from international competition often results in consumers
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137) Describe the three categories of tariffs, and explain how

  137) Describe the three categories of tariffs, and explain how the Smoot-Hawley Act of 1930 influenced tariffs in the United States. 138) Explain what is meant by dumping and the role of the World Trade Organization when charges of dumping are made.     139) Describe the three subcategories of import tariffs, and explain.
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137) Describe the three categories of tariffs, and explain how
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102) ________ an investment that does not involve obtaining a

  102) ________ is an investment that does not involve obtaining a degree of control in a company.   103) The destination of most foreign direct investment inflows is ________ countries. 104) The ________ theory states that a company will begin by exporting its product and later undertake foreign direct investment as a product.
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102) ________ an investment that does not involve obtaining a
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51) According to the eclectic theory, each of the following

    51) According to the eclectic theory, each of the following advantages must be present for a company to undertake foreign direct investment EXCEPT ________. A) location B) ownership C) internationalization D) localization   52) The ________ theory states that a firm tries to establish a dominant presence in an industry by undertaking foreign direct investment. A) market.
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51) According to the eclectic theory, each of the following
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31) All of the following factors of production internationally mobile

31) All of the following factors of production are internationally mobile EXCEPT ________. A) labor B) financial capital C) capital equipment D) land   32) The purchase of physical assets or a significant amount of ownership (stock) of a company in another country to gain a measure of management control is called ________. A) foreign direct investment B).
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31) All of the following factors of production internationally mobile
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Scenario: Not-So-Free Freeland Freeland a semi-closed economy whose government believes in

  Scenario: Not-So-Free Freeland Freeland is a semi-closed economy whose government believes in protecting national identity and becoming a self-sustaining country. The government's priority is to protect local jobs and provide opportunities to Freeland's emerging industries to flourish without the threat of external competition.     91) Freeland's restriction of free trade could be attributed.
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Scenario: Not-So-Free Freeland Freeland a semi-closed economy whose government believes in
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135) Explain how the national competitive advantage theory supports and

  135) Explain how the national competitive advantage theory supports and builds upon the factor proportions theory. Include a brief description of the national competitive advantage theory and the factor proportions theory in your answer. 136) Discuss the volume of international trade, and explain the role government and chance play in the.
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135) Explain how the national competitive advantage theory supports and
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11) Trade barriers and specialized knowledge both examples of market

    11) Trade barriers and specialized knowledge are both examples of market imperfections.   12) A market imperfection that can encourage foreign direct investment is the possibility that a company will create a future competitor by charging another company for access to its knowledge. 13) The eclectic theory states that firms undertake foreign direct.
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11) Trade barriers and specialized knowledge both examples of market
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81) Which of the following a reason for host country

    81) Which of the following is a reason for host country intervention in foreign direct investment (FDI) flows? A) FDI sends resources out of the host country B) To keep competitive local firms in business C) To improve the nation's balance of payments D) To prevent loss of technology to other countries   82) Reasons for.
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81) Which of the following a reason for host country
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51) Which of the following an example of a common

    51) Which of the following is an example of a common instrument used by government to promote trade? A) Tariffs B) Subsidies C) Quotas D) Local content requirements   52) All of the following are methods of restricting trade EXCEPT ________. A) tariff B) quota C) local content requirement D) subsidy   53) Which of the following is a method of restricting.
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51) Which of the following an example of a common
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130) Describe the role of special government agencies in promoting

  130) Describe the role of special government agencies in promoting exports and imports. 131) Describe why job protection is a political motive for governments to restrict free trade. Why might a government interested in job protection insist on local content requirements for international firms doing business in that country?       .
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130) Describe the role of special government agencies in promoting
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11) Nations often restrict trade in goods and services to

    11) Nations often restrict trade in goods and services to achieve cultural objectives, the most common being protection of national identity.   12) The main cultural motives behind government intervention in trade include protecting jobs and preserving national security. 13) Unwanted cultural influence in a nation can cause governments to block imports that.
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11) Nations often restrict trade in goods and services to
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91) Based the above scenario, which of the following a

    91) Based on the above scenario, which of the following is a true statement? A) Foodland has an absolute advantage in producing food. B) Foodland has an absolute advantage in producing drinks. C) Drinkland has an absolute advantage in producing both food and drinks. D) Drinkland has an absolute advantage in producing food.   92) Which.
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91) Based the above scenario, which of the following a
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111) According to the theory of absolute advantage, because there

    111) According to the theory of absolute advantage, because there are gains to be had by both countries involved in an exchange, international trade is a(n) ________.   112) A country has a(n) ________ when it is unable to produce a good more efficiently than other nations, but it produces the good.
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111) According to the theory of absolute advantage, because there
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41) Which of the following refers to the theory that

    41) Which of the following refers to the theory that a company will begin by exporting its products and later undertake foreign direct investment as a product moves through its life cycle? A) Eclectic life cycle B) Market imperfections life cycle C) International product life cycle D) Market power life cycle   42) According to the.
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41) Which of the following refers to the theory that
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61) All of the following benefits of acquisitions EXCEPT the

    61) All of the following are benefits of acquisitions EXCEPT the ________. A) acquisition of goodwill the company has built up over the years B) acquisition of the brand recognition of the existing company C) ability to use alternate methods to finance the purchase of the company D) acquisition of a plant or physical.
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61) All of the following benefits of acquisitions EXCEPT the
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81) A product's components made in a country that can

    81) A product's components are made in a country that can produce them at a high level of productivity and assembled in another country where productivity in assembly is high. This process resembles the theory of ________. A) comparative advantage B) advantage savings C) the international product life cycle D) factor proportions   82) Much production.
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81) A product's components made in a country that can
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41) The ________ argument says that a country's emerging industries

    41) The ________ argument says that a country's emerging industries need protection from international competition during their development. A) national security B) infant industry C) strategic trade policy D) GATT treaty   42) The notion that as an industry grows and matures it gains the knowledge it needs to become more innovative, efficient, and competitive is.
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41) The ________ argument says that a country's emerging industries
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1) The pattern of imports and exports that would result

1) The pattern of imports and exports that would result in the absence of trade barriers is called free trade.   2) Industries considered essential to national security often receive government-sponsored protection.   3) Governments may intervene in markets to protect both imports and exports in industries deemed essential to national security.   4) The main.
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1) The pattern of imports and exports that would result
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133) Explain the factor proportions theory, and discuss why it

  133) Explain the factor proportions theory, and discuss why it is at odds with the new trade theory. 134) Briefly describe the international product life cycle theory, and explain how both the international product life cycle theory and the new trade theory ultimately result in lower priced goods. Include a.
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133) Explain the factor proportions theory, and discuss why it
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131) Discuss the limitations of the international product life cycle

  131) Discuss the limitations of the international product life cycle theory. How well does the theory explain current trade patterns? 132) Explain the theory of comparative advantage, and discuss how it differs from the factor proportions theory. Include a description of the factor proportions theory in your answer.         .
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131) Discuss the limitations of the international product life cycle
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21) The soaring cost of developing subsequent stages of technology

    21) The soaring cost of developing subsequent stages of technology has led multinationals to engage in cross-border alliances and acquisitions.   22) The practice of "following clients" can be expected in industries where many component parts are obtained from suppliers with whom a manufacturer has a close working relationship.   23) In industries with.
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21) The soaring cost of developing subsequent stages of technology
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31) Governments impose trade barriers for all of the following

    31) Governments impose trade barriers for all of the following reasons EXCEPT ________. A) to protect national security B) to gain influence over other nations C) to respond to other nation's fair trade practices D) to protect jobs   32) The pattern of imports and exports that occurs in the absence of trade barriers is called.
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31) Governments impose trade barriers for all of the following
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61) Businesses can obtain financing from the Export-Import Bank through

    61) Businesses can obtain financing from the Export-Import Bank through all the following EXCEPT the ________. A) marketing assistance program B) city/state program C) working capital guarantee program D) credit information services program   62) A common purpose of many companies' facilities in foreign trade zones is ________. A) final product assembly B) acquisition of raw materials C) product.
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61) Businesses can obtain financing from the Export-Import Bank through
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101) The purchase, sale, or exchange of goods and services

    101) The purchase, sale, or exchange of goods and services across national borders is called ________.   102) U.S. jobs that are export-dependent typically pay ________ than jobs that are not export-dependent.   103) Trade in ________ makes up roughly 20 percent of total world trade.   104) The trade theory that nations should accumulate financial.
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101) The purchase, sale, or exchange of goods and services
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71) A(n) ________ tariff levied as a specific fee for

    71) A(n) ________ tariff is levied as a specific fee for each unit of an imported product. A) specific B) compound C) ad valorem D) specialized   72) A(n) ________ tariff is levied on an imported product and calculated partly as a percentage of its stated price and partly as a specific fee for each unit. A).
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71) A(n) ________ tariff levied as a specific fee for
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125) Describe each instrument governments use to promote trade. 126) Explain

  125) Describe each instrument governments use to promote trade. 126) Explain the concept of subsidies and how they are used, including their disadvantages. In what ways does the protection of infant industries produce similar drawbacks? 127) Describe the purpose of a foreign trade zone including including how it's used to promote.
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125) Describe each instrument governments use to promote trade. 126) Explain
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112) The extension of company activities into stages of production

  112) The extension of company activities into stages of production that provide a firm's inputs or absorb its output is called ________.   113) Building a subsidiary abroad from the ground up is called a(n) ________.   114) A system of production in which each of a product's components is produced in the location.
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112) The extension of company activities into stages of production
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128) Discuss the role entrepreneurs and small businesses play in

  128) Discuss the role entrepreneurs and small businesses play in the expansion of FDI. What are some of the surprises that may face managers as they invest in new markets abroad? 129) Explain the market power theory of FDI, and discuss why the decision whether or not to follow rivals into.
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128) Discuss the role entrepreneurs and small businesses play in
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128) Discuss the benefits and drawbacks of strategic trade policy.

  128) Discuss the benefits and drawbacks of strategic trade policy. How are the drawbacks of subsidies as a method of promoting trade similar to the drawbacks of strategic trade policy?   129) Discuss the role of the Export-Import Bank of the United States in international trade.         .
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128) Discuss the benefits and drawbacks of strategic trade policy.
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21) A government may impose import quotas to force companies

    21) A government may impose import quotas to force companies from other nations to compete against one another for the limited amount of imports allowed.   22) A country may impose export quotas to protect its domestic producers from international competition.   23) A voluntary export restraint (VER) refers to a quota that a.
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21) A government may impose import quotas to force companies
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