Quiz Chapter 3 Version A

Quiz Chapter 3 Version A - Quiz Chapter 3 Version A MCQ...

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Quiz Chapter 3 Version A MCQ: Q3-1. Which theory states that a nation should produce and sell goods to other countries that it produces most efficiently, and buy goods produced more efficiently by other countries? A) Comparative advantage. B) Absolute advantage. C) Mercantilism. D) Bilateral advantage. Q3-2. The president of the American Auto Parts Corporation recently testified before members of Congress, urging them to limit the flow of imported automobile parts into the United States. She contended that these imports were priced lower than the foreign producers were charging in their own countries. She believes these foreign producers are guilty of: A) dumping. B) reverse exporting. C) free trade. D) bilateral trade surplus. Q3-3. When foreign firms build production facilities in the United States, they are engaging in: A) exporting. B) importing. C) foreign direct investment. D) countertrading. Q3-4. Pepsi Cola has entered into a long-term contract with a South African beverage business. The contract calls for the South African firm to produce
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Quiz Chapter 3 Version A - Quiz Chapter 3 Version A MCQ...

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