QUESTION 13 The view traces its roots to Marxist political and economic theory. A radical OB.free market OC pragmatic nationalism O D. conservative QUESTION 14 Which of the following is NOT a home-country policy for limiting outward FDI? OA Limiting capital outflows OB. Manipulating tax rules to encourage their firms to invest at home Oc ofering govermment-backed insurance programs to multinationals O D.Prohibiting national firms from investing in certain countries for political reasons QUESTION 15
QUESTION 13 The view traces its roots to Marxist political and economic theory. A radical OB.free market OC pragmatic nationalism O D. conservative QUESTION 14 Which of the following is NOT a home-country policy for limiting outward FDI? OA Limiting capital outflows OB. Manipulating tax rules to encourage their firms to invest at home Oc ofering govermment-backed insurance programs to multinationals O D.Prohibiting national firms from investing in certain countries for political reasons QUESTION 15
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Hey ive done this assignment already i would just love to double check my answers thank you so much.
![QUESTION 13
The
view traces its roots to Marxist political and economic theory.
O A. radical
O B. free market
O C. pragmatic nationalism
O D. conservative
QUESTION 14
Which of the following is NOT a home-country policy for limiting outward FDI?
O A. Limiting capital outflows
O B. Manipulating tax rules to encourage their firms to invest at home
OC. Offering government-backed insurance programs to multinationals
O D. Prohibiting national firms from investing in certain countries for political reasons
QUESTION 15
Host governments use a range of controls to restrict FDI. The two most common are:
O A. monetary restraints and performance requirements.
O B. technology transfer restra
O C. ownership restraints and performance requirements.
O D. employment restraints and repatriation limitations.
and employment restrair
QUESTION 16
The
of foreign direct investment refers to the amount of FDI undertaken over a given period (normally a year). The
of foreign direct investment refers to the total accumulated value of foreign-owned assets at any time.
O A. portfolio, current
O B. flow, stock
O C. stock, flow
O D. stockpile, portfolio
QUESTION 17
A Paris-based intergovernmental organization of "wealthy" nations whose purpose is to provide its 29 member states with a forum in which governments can compare their experiences, discuss the problems they share, and seek solutions that can be applied within their own national contexts is called the:
O A. Council for Economic Strength.
O B. Federation of Emerging Nations.
OC. Organization for Economic Cooperation and Development.
O D. Organization for Economic Strength and Global Leadership.
QUESTION 18
Although it normally involves much longer-term commitments, franchising is essentially the service industry version of:
O A. exporting.
O B. licensing.
O C. FDI.
O D. turnkey projects.
QUESTION 19
The European Union effectively became a single market with 340 million consumers in 1993 and how many million consumers today?
O A. 370.
O B. 800,
O C. 500.
O D. 300.
QUESTION 20
Nowhere has the movement toward regional economic integration been more successful than in
O A. Africa
O B. South America
O C. Asia
O D. Europe
QUESTION 21
Which type of agreement is the most popular form of regional economic integration, accounting for almost 90 percent of regional agreements?
O A. Customs union agreement
O B. Free trade agreement
O C. Common market agreement
O D. Political union agreement
QUESTION 22
The following three countries implemented the North American Free Trade Agreement (NAFTA):
O A. Panama, Mexico, and the United States.
O B. Canada, Brazil, and the United States.
O C. United States, Argentina, and Mexico.
O D. Canada, Mexico, and the United States.
QUESTION 23
The free trade area known as MERCOSUR consists of the following four countries:
O A. Chile, Mexico, Columbia, and Paraguay
O B. Argentina, Brazil, Paraguay, and Uruguay
OC. Chile, Brazil, Uruguay, and Columbia
O D. Mexico, Columbia, Paraguay, and Uruguay
QUESTION 24
Which of the following selections accurately depicts the levels of economic integration from least integrated to most integrated?
O A. Common market, economic union, full political union, free trade area, and customs union
O B. Common market, economic union, full political union, free trade area, and customs union
O C. Free trade area, customs union, common market, economic union, and full political union
O D. Full political union, free trade area, common market, customs union, and economic union
QUESTION 25
In a theoretically ideal
O A. common market
, all barriers to trade of goods and services are removed between member countries.
O B. economic union
O C. political union
O D. free trade area](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d5c641d-46b8-40f1-b7a0-4fe94f206e12%2Ff16cd561-003a-43b6-8de2-2f73928e42e2%2Flfcf5zs_processed.png&w=3840&q=75)
Transcribed Image Text:QUESTION 13
The
view traces its roots to Marxist political and economic theory.
O A. radical
O B. free market
O C. pragmatic nationalism
O D. conservative
QUESTION 14
Which of the following is NOT a home-country policy for limiting outward FDI?
O A. Limiting capital outflows
O B. Manipulating tax rules to encourage their firms to invest at home
OC. Offering government-backed insurance programs to multinationals
O D. Prohibiting national firms from investing in certain countries for political reasons
QUESTION 15
Host governments use a range of controls to restrict FDI. The two most common are:
O A. monetary restraints and performance requirements.
O B. technology transfer restra
O C. ownership restraints and performance requirements.
O D. employment restraints and repatriation limitations.
and employment restrair
QUESTION 16
The
of foreign direct investment refers to the amount of FDI undertaken over a given period (normally a year). The
of foreign direct investment refers to the total accumulated value of foreign-owned assets at any time.
O A. portfolio, current
O B. flow, stock
O C. stock, flow
O D. stockpile, portfolio
QUESTION 17
A Paris-based intergovernmental organization of "wealthy" nations whose purpose is to provide its 29 member states with a forum in which governments can compare their experiences, discuss the problems they share, and seek solutions that can be applied within their own national contexts is called the:
O A. Council for Economic Strength.
O B. Federation of Emerging Nations.
OC. Organization for Economic Cooperation and Development.
O D. Organization for Economic Strength and Global Leadership.
QUESTION 18
Although it normally involves much longer-term commitments, franchising is essentially the service industry version of:
O A. exporting.
O B. licensing.
O C. FDI.
O D. turnkey projects.
QUESTION 19
The European Union effectively became a single market with 340 million consumers in 1993 and how many million consumers today?
O A. 370.
O B. 800,
O C. 500.
O D. 300.
QUESTION 20
Nowhere has the movement toward regional economic integration been more successful than in
O A. Africa
O B. South America
O C. Asia
O D. Europe
QUESTION 21
Which type of agreement is the most popular form of regional economic integration, accounting for almost 90 percent of regional agreements?
O A. Customs union agreement
O B. Free trade agreement
O C. Common market agreement
O D. Political union agreement
QUESTION 22
The following three countries implemented the North American Free Trade Agreement (NAFTA):
O A. Panama, Mexico, and the United States.
O B. Canada, Brazil, and the United States.
O C. United States, Argentina, and Mexico.
O D. Canada, Mexico, and the United States.
QUESTION 23
The free trade area known as MERCOSUR consists of the following four countries:
O A. Chile, Mexico, Columbia, and Paraguay
O B. Argentina, Brazil, Paraguay, and Uruguay
OC. Chile, Brazil, Uruguay, and Columbia
O D. Mexico, Columbia, Paraguay, and Uruguay
QUESTION 24
Which of the following selections accurately depicts the levels of economic integration from least integrated to most integrated?
O A. Common market, economic union, full political union, free trade area, and customs union
O B. Common market, economic union, full political union, free trade area, and customs union
O C. Free trade area, customs union, common market, economic union, and full political union
O D. Full political union, free trade area, common market, customs union, and economic union
QUESTION 25
In a theoretically ideal
O A. common market
, all barriers to trade of goods and services are removed between member countries.
O B. economic union
O C. political union
O D. free trade area
![QUESTION 1
occurs, according to the U.S. Department of Commerce, whenever a U.S. citizen, organization, or affiliated group takes an interest of 10 percent or more in a foreign business entity.
O A. Cross-boarder international investment
O B. Foreign direct investment
OC. Reciprocal foreign investment
O D. International capital investment
QUESTION 2
Why would a firm prefer to execute a green-field investment instead of acquiring an existing asset?
O A. Because green-field investments are slow to execute
O B. Because foreign firms have valuable strategic assets
O C. Because firms that acquire existing assets believe they can increase the asset's efficiency
O D. Because they want to have full control of design and layout
QUESTION 3
Which of the following involves granting a foreign entity the right to produce and sell the firm's product in return for a royalty fee on every unit sold?
O A. Franchising
O B. Exporting
OC. Licensing
O D. Foreign Direct Investment
QUESTION 4
When transportation costs are added to production costs, it becomes unprofitable to ship some products over a large distance. This is particularly true of products that have a(n):
O A. high value-to-weight ratio
O B. moderate value-to-weight ratio
O C. lowvalue-to-weight ratio
O D. extremely high value-to-weight ratio
QUESTION 5
Much foreign direct investment is undertaken as a response to actual or threatened
O A. trade barriers.
O B. economic sanctions.
O C. legal action.
O D. international appeals.
QUESTION 6
When
a firm will favor FDI over exporting as an entry strategy, according to the textbook.
O A. interest rates or government policy make exporting unattractive
O B. transportation costs or trade barriers make exporting unattractive
O C. cultural barriers or trade barriers make exporting unattractive
O D. cultural barriers or government policy make exporting unattractive
QUESTION 7
If a firm want to avoid bearing the costs of establishing production facilities in a foreign country, which of the following would be LEAST advisable?
O A. Exporting
O B. FDI
O C. Licensing
O D. Franchising
QUESTION 8
By limiting imports through quotas, governments increase the attractiveness of:
O A. FDland licensing.
O B. licensing and exporting.
O C. exporting and FDI.
O D. withdrawing from international markets.
QUESTION 9
In the 1960s, RCA licensed its leading-edge color television technology to a number of Japanese companies, which later took over the market. This demonstrates:
O A. Licensing is always better than FDI.
O B. There are certain capabilities that are often not amenable to licensing.
O C. Licensing may result in a firm's giving away valuable technological know-how to a potential foreign competitor.
O D. Licensing does not give a firm the tight control over manufacturing, marketing, and strategy in a foreign country that may be required to maximize its profitability.
QUESTION 10
The establishment of a wholly new operation in a foreign country is referred to as a(n):
O A. outplacement.
O B. green-field investment.
O C. newventure.
O D. exporting.
QUESTION 11
The
view argues that international production should be distributed among countries according to the theory of comparative advantage.
O A. conservative
O B. pragmatic nationalism
OC. free market
O D. radical
QUESTION 12
When a country is importing more goods and services than it is exporting, it is incurring a:
O A. current account surplus.
O B. current account deficit.
O C. payment surplus.
O D. payment deficit.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d5c641d-46b8-40f1-b7a0-4fe94f206e12%2Ff16cd561-003a-43b6-8de2-2f73928e42e2%2Fjynf55q_processed.png&w=3840&q=75)
Transcribed Image Text:QUESTION 1
occurs, according to the U.S. Department of Commerce, whenever a U.S. citizen, organization, or affiliated group takes an interest of 10 percent or more in a foreign business entity.
O A. Cross-boarder international investment
O B. Foreign direct investment
OC. Reciprocal foreign investment
O D. International capital investment
QUESTION 2
Why would a firm prefer to execute a green-field investment instead of acquiring an existing asset?
O A. Because green-field investments are slow to execute
O B. Because foreign firms have valuable strategic assets
O C. Because firms that acquire existing assets believe they can increase the asset's efficiency
O D. Because they want to have full control of design and layout
QUESTION 3
Which of the following involves granting a foreign entity the right to produce and sell the firm's product in return for a royalty fee on every unit sold?
O A. Franchising
O B. Exporting
OC. Licensing
O D. Foreign Direct Investment
QUESTION 4
When transportation costs are added to production costs, it becomes unprofitable to ship some products over a large distance. This is particularly true of products that have a(n):
O A. high value-to-weight ratio
O B. moderate value-to-weight ratio
O C. lowvalue-to-weight ratio
O D. extremely high value-to-weight ratio
QUESTION 5
Much foreign direct investment is undertaken as a response to actual or threatened
O A. trade barriers.
O B. economic sanctions.
O C. legal action.
O D. international appeals.
QUESTION 6
When
a firm will favor FDI over exporting as an entry strategy, according to the textbook.
O A. interest rates or government policy make exporting unattractive
O B. transportation costs or trade barriers make exporting unattractive
O C. cultural barriers or trade barriers make exporting unattractive
O D. cultural barriers or government policy make exporting unattractive
QUESTION 7
If a firm want to avoid bearing the costs of establishing production facilities in a foreign country, which of the following would be LEAST advisable?
O A. Exporting
O B. FDI
O C. Licensing
O D. Franchising
QUESTION 8
By limiting imports through quotas, governments increase the attractiveness of:
O A. FDland licensing.
O B. licensing and exporting.
O C. exporting and FDI.
O D. withdrawing from international markets.
QUESTION 9
In the 1960s, RCA licensed its leading-edge color television technology to a number of Japanese companies, which later took over the market. This demonstrates:
O A. Licensing is always better than FDI.
O B. There are certain capabilities that are often not amenable to licensing.
O C. Licensing may result in a firm's giving away valuable technological know-how to a potential foreign competitor.
O D. Licensing does not give a firm the tight control over manufacturing, marketing, and strategy in a foreign country that may be required to maximize its profitability.
QUESTION 10
The establishment of a wholly new operation in a foreign country is referred to as a(n):
O A. outplacement.
O B. green-field investment.
O C. newventure.
O D. exporting.
QUESTION 11
The
view argues that international production should be distributed among countries according to the theory of comparative advantage.
O A. conservative
O B. pragmatic nationalism
OC. free market
O D. radical
QUESTION 12
When a country is importing more goods and services than it is exporting, it is incurring a:
O A. current account surplus.
O B. current account deficit.
O C. payment surplus.
O D. payment deficit.
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