International Business Quiz ch 3

International Business Quiz ch 3 - INC ORRECT The...

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INC ORRECT The Heckscher-Ohlin theory states that differences in production costs occur because of differences in the supply of production factors. A) True 2 CORRECT An important outcome of Leontief's work was recognizing the potential for differences in the kinds of labor as well as differences in natural and capital resources. A) True 3 CORRECT Recent research on the first mover theory also confirms that firms moving first into a market soon dominate it. B) False 4 INCORRECT Internalization theory suggests that to obtain a higher return on its investment, a firm should transfer its superior knowledge in the open market rather than selling it to a foreign subsidiary. B) False 5 INCORRECT The eclectic theory of international production is sometimes referred to as the OLI model. A) True 6 INCORRECT Adam Smith claimed that: A) government, not market forces, should determine the direction, volume, and composition of international trade. B)
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This note was uploaded on 05/15/2011 for the course MGMT 338 taught by Professor Pendergrass during the Spring '10 term at Columbia College.

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International Business Quiz ch 3 - INC ORRECT The...

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