国际商务练习题.doc

Chapter 01Globalization True / False Questions1.(p.4)The notion that national economies are relatively self-contained entities is on the rise.FALSEWe are moving away from a world in which national economies were relatively self-contained entities.5.(p.11)The most global markets currently are markets for industrial goods and materials that serve a universal need the world over.TRUE8.(p.11)One of the UN central mandates is the promotion of higher standards of living, full employment, and conditions of economic and social progress and development.TRUE9.(p.11)Underlying the trend towards greater globalization is technological change and a decline in barriers to the free flow of goods, services, and capital.TRUE15.(p.14)Declining barriers to cross-border trade and investment cannot be taken for granted.TRUE28.(p.26)The antiglobalization effort is created and supported only by a small group of hard-core anarchists.FALSEMultiple Choice Questions41.Which of the following is not characteristic of globalization?AA.National economies are turning into independent economic systems.B.Material culture is starting to look similar the world over.C.Perceived distance is shrinking due to advances in transportation and telecommunications.D.Barriers to cross-border trade and investment are declining.46.The most global markets currently are markets for:DA.services.B.consumer goods.C.consumer durables.D.industrial goods.47.Which of the following is not an impediment that makes it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe?AA.Reduced transportation costs.B.Government regulations.C.Issues associated with economic and political risk.D.Barriers to foreign direct investment.51._ occur(s) when a firm exports goods or services to consumers in another country.AA.International tradeB.Foreign direct investmentC.Inward investmentD.Merger and acquisitions59.Technological innovations have facilitated all of the following except:A.globalization of production.DB.globalization of markets.C.creation of electronic global marketplaces.D.creation of absolutely homogeneous consumer markets.75.Which of the following does not help create an economic system that is favorable to international business?AA.Decreased privatizationB.Widespread deregulationC.Open marketsD.Falling trade and investment barriersChapter 05International Trade Theory True / False Questions1.(p.160)Mercantilism advocated that countries should encourage exports and imports.FALSE3.(p.161)According to the theories of Smith, Ricardo, and Heckscher-Ohlin, if a country can produce a product by itself, it should not import that product.FALSE5.(p.161)The Heckscher-Ohlin theory emphasizes the interplay between the proportions in which the factors of production are available in different countries and the proportions in which they are needed for producing particular goods.TRUE7.(p.162)New trade theory stresses that in some cases countries specialize in the production and export of particular products not because of underlying differences in factor endowments, but because in certain industries the world market can only support a limited number of firms.TRUEAACSB: Reflective Thinking SkillsBlooms: KnowledgeDifficulty: MediumLearning Objective: 05-28.(p.162)Ricardo noted the importance of country factors such as domestic demand and domestic rivalry in explaining a nations dominance in the production and export of particular products.FALSE23.(p.175)A central point in Vernons product life-cycle was that demand for new products tends to be solely based on price factors.FALSE27.(p.179)Trade is mutually beneficial, according to new trade theory, because it allows for the specialization of production, the realization of scale economies, and the production of a greater variety of products at lower prices.TRUE30.(p.181)According to Porter, four broad attributes of a nation shape the environment in which local firms compete including supply conditions, factor endowments, regulation, and advanced factors.FALSE31.(p.181)Porter argues that favorable demand conditions will result in competitive advantage unless the state of rivalry is sufficient to cause firms to respond to them.FALSE35.(p.185)Porters diamond of competitive advantage has proven to be a powerful predictor of world trade patterns.FALSE38.(p.186)According to the new trade theory, firms that establish a first-mover advantage with regard to the production of a particular new product may subsequently dominate global trade in that product.TRUEMultiple Choice Questions42.(p.160)Free trade:A.formed the basis for the mercantilist philosophy.B.is in direct contrast to the notion of the invisible hand as advocated by Smith.C.refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country.D.rejects the laissez-faire stance toward trade and maintains that it is not in the best interests of a country.43.(p.160)This theory, advanced by the 19th-century English economist David Ricardo, forms the intellectual basis of the modern argument for unrestricted free trade.A.Heckscher-OhlinB.MercantilismC.Comparative advantageD.Absolute advantageDavid Ricardos theory of comparative advantage offers an explanation in terms of international differences in labor productivity.45.(p.161)This theory explains the observed patterns of international trade by emphasizing the interplay between the proportions in which the factors of production are available in different countries and the proportions in which they are needed for producing particular goods.A.MercantilismB.Absolute advantageC.Heckscher-OhlinD.Comparative advantageThis theory rests on the assumption that countries have varying endowments of the various factors of production.48.(p.162)Which theory stresses that in some cases countries specialize in the production and export of particular products not because of underlying differences in factor endowments, but because in certain industries the world market can support only a limited number of firms?A.Balanced tradeB.Heckscher-OhlinC.New tradeD.Product life-cycleIn those industries when the output required to attain economies of scale represents a significant proportion of total world demand, the global market may only be able to support a small number of enterprises.51.(p.162)Identify the theory that can be interpreted as justifying some limited government intervention to support the development of certain export-oriented industries.A.Theory of national competitive advantageB.Heckscher-Ohlin theoryC.Theory of comparative advantageD.Theory of absolute advantageGovernment, by its choice of policies, can detract from or improve national advantage. For example, regulation can alter home demand conditions, antitrust policies can influence the intensity of rivalry within an industry, and government investments in education can change factor endowments.59.(p.166)Trade produces net gains for all involved and hence is a:A.zero-sum game.B.balance-of-trade game.C.positive-sum game.D.equilibrium-gain game.As a result of specialization and trade, output would be increased and consumers in both the concerned nations would be able to consume more. Thus, trade is a positive-sum game; it produces net gains for all involved.61.(p.168)What is the basic message of the theory of comparative advantage?A.Countries are similar in their ability to produce goods efficientlyB.International trade is rarely beneficial to a countryC.Potential world production is greater with unrestricted free trade than it is with restricted tradeD.Trade is a zero-sum gameRicardos theory suggests that consumers in all nations can consume more if there are no restrictions on trade. This occurs even in countries that lack an absolute advantage in the production of any good. To an even greater degree than the theory of absolute advantage, the theory of comparative advantage suggests that trade is a positive-sum game in which all countries that participate realize economic gains.69.(p.174)According to Heckscher and Ohlin, _ meant the extent to which a country is provided with such resources as land, labor, and capital.A.factors of productionB.economic facilitatorsC.factor endowmentsD.manufacturing factorsNations have varying factor endowments, and different factor endowments explain differences in factor costs; specifically, the more abundant a factor, the lower its cost.74.(p.177)The product life-cycle theory:A.remains a relevant theory of explaining international trade in the modern world.B.was useful for explaining the pattern of trade during the brief period of American global dominance.C.proved to be a poor explanation of world trade patterns during the 1960s and 1970s.D.was a strong predictor of trade patterns during the 1800s.Although Vernons theory may be useful for explaining the pattern of international trade during the brief period of American global dominance, its relevance in the modern world seems more limited.76.(p.180)According to the new trade theorists, because early entrants are able to ga