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Study Resources (Business Management)

    61) Exports and imports of computer software, electronic components, and apparel are included in the ________ account of a country's balance of payments. A) services B) capital C) merchandise D) savings   62) Which of the following accounts within the current account of the United States' balance of payments includes financial gains earned on U.S..
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    51) Which of the following statements is true of rationalized production? A) It depends on a large number of distribution channels which leads to inefficiency. B) It depends on a large number of distribution channels which increases the cost of production. C) It can bring the entire production process to a standstill, if.
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    31) Which of the following do products designated as dual use require before exports can take place? A) currency controls B) countervailing duties C) special government approval D) local content requirements   32) Which of the following is an example of a dual use product? A) a blowdryer B) a GPS navigation device C) a food processor D) a vacuum.
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    81) A country that believes an imported product is being sold in its market for a price lower than the cost of production for the product may impose a(n) ________ in retaliation. A) countervailing duty B) ad valorem tariff C) antidumping duty D) compound tariff   82) An additional tariff placed on an imported product that.
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    21) The income payments account includes income earned on home country assets held abroad.   22) A current account deficit occurs when a country exports more goods and receives more income from abroad than it imports and pays abroad.   23) One reason a home country may discourage foreign direct investment outflows is to.
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    51) A tariff levied by the government of a country that is selling goods abroad is called a(n) ________. A) export tariff B) ad valorem tariff C) compound tariff D) specific tariff   52) Which of the following statements is true of tariffs? A) Tariffs increase an imported product's appeal to buyers. B) Transit tariffs are the most.
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    71) Home nations discourage foreign direct investment outflows because it ________. A) discourages cooperation between countries B) replaces jobs in the home nation C) fails to protect the "sunset" industries in the home nation D) decreases long-term competitiveness of companies   72) A home country encourages outflows of foreign direct investment because it ________. A) helps in.
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    61) Factor proportions theory differs from the theory of comparative advantage in that the focus of factor proportions theory is on the ________. A) usage of the most abundant factors of production, while the focus of the comparative advantage theory is on the productivity of the production process B) accumulation of financial.
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    41) Today, countries seen by others as trying to maintain a trade surplus and expand their national treasures at the expense of other nations are accused of practicing ________. A) totalitarianism B) anti-mercantilism C) social stratification D) economic nationalism   42) Another term for neomercantilism is ________. A) new trade B) free trade C) economic nationalism D) political nationalism   43).
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    11) According to the eclectic theory that explains FDI, an ownership advantage is the advantage that arises from internalizing a business activity rather than leaving it to a relatively inefficient market.   12) According to the eclectic theory that explains FDI, an internalization advantage is the advantage of locating a particular economic.
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    41) Which of the following is an instrument that governments use to promote trade? A) embargoes B) tariffs C) export financing D) administrative delays   42) Financial assistance given to domestic producers in the form of cash payments is an example of a(n) ________. A) ad valorem tariff B) quota C) subsidy D) export tariff   43) A designated geographic region in.
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    1) Not all factors of production are internationally mobile.   2) Portfolio investment is the purchase of physical assets of a company in another country to gain a degree of management control.   3) Increasing globalization is causing a growing number of international companies from emerging markets to undertake FDI.   4) Developed countries have been.
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    1) The pattern of imports and exports that would result in lesser trade barriers is called free trade.   2) Industries considered essential to national security often receive government-sponsored protection.   3) A disadvantage of protection from import competition is the added cost of continuing to produce a good domestically that could be supplied.
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    81) GMI's purchase of the Brazilian company is best classified as a(n) ________. A) greenfield investment B) portfolio investment C) acquisition D) demerger   82) GMI's subsidiary for component B in Thailand is best described as a(n) ________. A) greenfield investment B) portfolio investment C) acquisition D) merger   83) In which of the following accounts would GMI's purchase of the company.
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    31) Which of the following is true of foreign direct investment? A) The contributions of entrepreneurs and small businesses to foreign direct investment is insignificant. B) Globalization has led emerging markets to undertake less foreign direct investment and industrialized nations to undertake more foreign direct investment. C) The desire to increase a firm's.
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  101) Describe the role of special government agencies in promoting exports and imports. 102) Explain 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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    21) In the maturing product stage of the international product life cycle theory, production facilities are introduced in countries with the highest demand.   22) An absolute advantage is the economic and strategic advantage gained by being the first company to enter an industry.   23) National competitive advantage theory states that a nation's.
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    81) If these two countries were to gain from trading with each other, this would support the notion that trade is a ________. A) zero-sum game B) negative experience C) positive-sum game D) form of economic nationalism   82) A third country, Funland, also produces food and drinks. In Funland, one resource unit produces 8 tons.
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    31) The danger of trade dependency is that ________. A) it often leads to the exploitation of developed countries B) political turmoils in a country might affect all dependent countries C) the countries involved in trade often get into rivalry over trade tariff issues D) it is difficult to end trade activities with current.
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    21) An embargo is the most restrictive nontariff trade barrier available.   22) Restrictions on the convertibility of one currency into others is called administrative delays.   23) When one World Trade Organization member files a complaint against another, decisions are to be rendered in less than one year.   24) When a company exports a.
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    71) Much production in the world today closely resembles what is predicted by the ________. A) new trade theory B) international product life cycle C) theory of comparative advantage D) theory of factor proportions   72) Which of the following is an argument offered by the new trade theory? A) It is in line with the factor.
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    71) Which of the following statements is true of local content requirements? A) It is a strategy mainly used by developed nations. B) This strategy enforces companies to locate their manufacturing facilities in their home countries. C) Local content requirements hurt domestic producers through their effect on prices. D) It forces companies from other.
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    51) The theory of comparative advantage was proposed by ________. A) David Ricardo B) Adam Smith C) Bertil Ohlin D) Raymond Vernon 52) To complete his business bookkeeping work each month, a business owner spends about 20 hours and in the process, has to give up $900 in income. If he hired a bookkeeper to.
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    11) According to Adam Smith, international trade should be restricted by tariffs and quotas in order to give a country an absolute advantage.   12) The theory of absolute advantage destroys the mercantilist idea that international trade is a zero-sum game. 13) The theory of absolute advantage measures a nation's wealth by the.
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    41) The possibility that a company will create a future competitor by charging another company for access to its knowledge is a(n) ________ that can encourage FDI. A) ownership advantage B) internalization advantage C) market imperfection D) trade barrier   42) The ________ theory states that a firm tries to establish a dominant presence in.
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    1) International trade is the purchase, sale, or exchange of goods and services across national borders.   2) The value of trade passing through the borders of all countries exceeds the amount of goods and services they produce.   3) Most of the world's merchandise trade is composed of trade in agricultural products.   4) Trade.
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    11) Receiving financing from government agencies is often crucial to the success of small businesses just beginning to export.   12) The major purpose of foreign trade zones is to implement barriers to trade and commerce. 13) Customs duties decrease the total amount of a good's production cost.   14) An import tariff is levied.
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