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Solved Midterm Exam forInternational BusinessOperations | MGMT 361International BusinessOld Dominion University8 pag.Document shared on Downloaded by: tung-duong-vu ([email protected])
361fall2011MTpracticeKey21 OCTOBER1.(p. 160)Propagated in the 16thand 17thcenturies, _____ advocated that countries should simultaneouslyencourage exports and discourage imports.
2.(p. 160)This theory, advanced by the 19th-century English economist David Ricardo, forms the intellectual basisof the modern argument for unrestricted free trade.
3.(p. 161-162)Identify the incorrect statement pertaining to Raymond Vernon's product life-cycle theory.
4.(p. 162)Identify the theory that can be interpreted as justifying some limited government intervention to supportthe development of certain export-oriented industries.
5.(p. 163)Mercantilism viewed trade as a(n):
6.(p. 163)According to Smith, countries should specialize in the production of goods for which they have anabsolute advantage and then:
7.(p. 166)Trade produces net gains for all involved and hence is a:
8.(p. 170)The simple comparative advantage model assumes constant returns to specialization. However, it ismore realistic to assume diminishing returns to specialization because of all of the following reasons except:
9.(p. 171)The simple comparative advantage model assumes that trade does not change a country's stock ofresources or their utilization efficiency. If we relax this assumption to make allowances for dynamic changes,all of the following become apparent except:
10.(p. 171)According to the _____ model, when a rich country enters into a free trade agreement with a poorcountry that rapidly experiences dynamic gains, the rich country is likely to not have net gains.
11.(p. 175)Raymond Vernon argued that new products were developed by U.S. firms and first sold in the U.S.market because:
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12.(p. 176)According to the product life-cycle theory, the locus of global production initially switches from theU.S. to other advanced nations and then from those nations to developing countries. The consequence of thistrend for the pattern of world trade is that over time the U.S.:

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Term
Summer
Professor
NoProfessor
Tags
International Trade, World Trade Organization

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