Chap2 - Chap2 1 Since World War II world trade has grown...

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Chap2 1. Since World War II, world trade___ has grown dramatically. 2. Local cultural preference can be just as strong as social or political pressures in blocking or dampening the economic imperative or desire to globalize the firm. 1 3. Which of the following is a national account that records transactions involving the purchase or sale of assets.capital account 4. Production and assembly are not part of the transformation stage of the VAC.2 7. Multinational strategies, otherwise known as the economic imperative, will seek to spread fixed costs over greater units of production, thereby spreading fixed, capital costs over larger units of production and sales and subsequently lower total price unit, winning market share from competitors with the lower price. 2 8. The European Union impacts international trade and business because of its ability to enact and enforce laws and regulations.1 9. Economies of scale are achieved when the average cost of producing one unit of product decreases because the fixed costs are spread over greater unit produced. . this is the force behind the economic imperative as well.1 10. When Firm A buys part of value added chain of another firm, Firm B in a country and uses the output of Firm B to feed into it’s value added chain, this is an example of Vertical FDI, typical of a Global frim.1 11. The requirement that a sufficient protion of a product’s content originate within a certain market to escape tariff charges is an example of a(n) ____ Not tariff quota 12. Building a subsidiary abroad from the ground up is called a greenfield investment.1 13. Which of the following terms is used to refer to the application of home-country laws to conduct outside of national borders? Not international contracts 14. Which theory suggests that a country should export those goods and services for which it is more productive than other countries and import those goods and services for which other countries are more productive? Not specialization of countries. 15. Totalitarian states are characterized by all of the following except___free flow 16. Which of the following pairs of nations are on opposite ends of the political freedom scale?Cuba 17. When taking on a foreign partner, firms expect to reduce risks and share profits.1 18. Mercantilism can still be seen today especially when ____ and is known as _____NOT time and good 19. A current account deficit occurs when a country exports more good and services and receives more income from abroad than it imports and pays abroad.2 20. Leontief predicted that if the Heckscher-Ohlin theory held…Not the united states would import capital… 22. Mercantilism was the world’s first system of free market and free trade.2 23. What country or region listed below does not support any neomercantilist policy today?Nearly 24. Multinational Business Activities (MBA) performed by …Not Porter 25. The practice of “following clients” can be expected in industries where many component parts are obtained
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This note was uploaded on 09/08/2011 for the course IBUS 330 taught by Professor Nicholson during the Spring '07 term at S.F. State.

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Chap2 - Chap2 1 Since World War II world trade has grown...

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