QUESTION Which of the following allows two or more firms to share the fixed costs (and associated risks) of developing new products or processes? A. Franchising agreement B. Global web C. Free trade agreement D. Strategic alliance E. Dispersion linkage ANSWER D
Date: September 3rd, 2020
QUESTION Although most international trade and investment are still conducted by large firms, many medium-size and small businesses are becoming increasingly involved in international trade and investment. Indicate whether the statement is true or false. ANSWER TRUE Although most international trade and investment are still conducted by large firms, many medium-size and small businesses […]
Date: September 3rd, 2020
QUESTION By offering the same basic product worldwide, firms help to create a global market. Indicate whether the statement is true or false. ANSWER TRUE It has been argued for some time that the tastes and preferences of consumers in different nations are beginning to converge on some global norm, thereby helping to create […]
Date: September 3rd, 2020
QUESTION According to many influential economists, the increase in international trade and cross-border investment will result in an increase in the prices of goods and services. Indicate whether the statement is true or false. ANSWER FALSE Many influential economists, politicians, and business leaders seem to think that the shift toward a more integrated and […]
Date: September 3rd, 2020
QUESTION As a result of globalization, companies rarely need to customize marketing strategies, product features, and operating practices in different countries. Indicate whether the statement is true or false. ANSWER FALSE Significant differences still exist among national markets along many relevant dimensions, including consumer tastes and preferences, distribution channels, culturally embedded value systems, business […]
Date: September 3rd, 2020
QUESTION The move toward a global economy has strengthened the adoption of conservative economic policies by developing nations. Indicate whether the statement is true or false. ANSWER FALSE The move toward a global economy has been further strengthened by the widespread adoption of liberal economic policies by countries that had firmly opposed them for […]
Date: September 3rd, 2020
QUESTION According to Adam Smith, market mechanism, rather than government policy, should determine a country’s imports and exports. Indicate whether the statement is true or false. ANSWER TRUE Adam Smith argued that the invisible hand of the market mechanism, rather than government policy, should determine what a country imports and what it exports.
Date: September 3rd, 2020
QUESTION The theories of Smith, Ricardo, and Heckscher-Ohlin failed to identify the specific benefits of international trade. Indicate whether the statement is true or false. ANSWER FALSE The great strength of the theories of Smith, Ricardo, and Heckscher-Ohlin is that they identify with precision the specific benefits of international trade.
Date: September 3rd, 2020
QUESTION Although mercantilism is an old and largely discredited doctrine, its echoes remain in modern political debate and in the trade policies of many countries. Indicate whether the statement is true or false. ANSWER TRUE Although mercantilism is an old and largely discredited doctrine, its echoes remain in modern political debate and in the […]
Date: September 3rd, 2020
QUESTION Pressures for greater protectionism increased around the world during the 1980s and early 1990s due to the strain caused by the persistent trade deficit in the world’s largest economy, Japan. Indicate whether the statement is true or false. ANSWER FALSE During the 1980s and early 1990s, the world trading system erected by the […]
Date: September 3rd, 2020
