Questions upon International Transact

 Questions in International Trade Research Daily news

Testbank

Chapter you: Introduction

TRUE/FALSE 1 . Lots of the developing countries of the world knowledge traffic gridlock. ANS: To DIF: Easy REF: Advantages

2 . Universe trade is continuing to grow about 10 % per year as 1950. ANS: F DIF: Easy REF: 1-1

several. World transact in solutions representf a higher percentage of total community trade than does globe trade in merchandise. ANS: F DIF: Moderate REF: 1-1: Desks 1-1, 1-2, and 1-3

4. The Bretton Forest Conference activated the creation of the World Transact Organization in 1944. ANS: F DIF: Moderate REF: 1-2a

5. The Treaty of The italian capital in 1957 was the first step in the creation of the Eu. ANS: Big t DIF: Easy REF: 1-2c

6. The North American Totally free Trade Association (NAFTA) includes only the Usa and Canada. ANS: N DIF: Modest REF: 1-2c: Table 1-4

7. The euro has replaced the currencies of all the countries of the European Union. ANS: F DIF: Hard REF: Table 1-2d

8. In 2007, america exported even more goods than any other country in the world. ANS: F DIF: Moderate REF: 1-3: Number 1-3

on the lookout for. In 2007, the United States brought in about 1 ) 5 times even more goods than it released. ANS: T DIF: Hard REF: 1-3: Figures 1-3 and 1-4

10. An organization that has to generate large capital outlays before beginning production may wish to export in order to spread the costs over the large number of units produced. ANS: T DIF: Moderate REF: 1-4a

1-1

Chapter you: Introduction eleven. The " Wal-Mart effect” pushes suppliers to sell items at ever-lower prices, generally obtained by simply manufacturing overseas. ANS: T DIF: Modest REF: 1-4a

12. The word " outsourcing” refers to a strategy whereby a firm purchases plant life overseas. ANS: F DIF: Moderate REF: 1-4a

13. A competitor offering a fresh product within a mature market can attract a company to begin importing its own low-cost alternate. ANS: Capital t DIF: Moderate REF: 1-4b

14 Individuals are becoming increasingly worldly and willing to buy foreign-made products. ANS: T DIF: Convenient REF: 1-4c

15. In accordance to Thomas Friedman, people looking for careers now take on hundreds of additional similarly skilled applicants, of all corners of the world. ANS: T DIF: Hard REF: 1-4d

18. According to Adam Jones, countries control when they have a comparative benefit over various other countries within the manufacturing of a given product. ANS: Farreneheit DIF: Easy REF: 1-5a

17. A rustic enjoys a total advantage in the production of a particular great when it will produce it at a lower price than an additional country. ANS: T DIF: Easy REF: 1-5a

18. David Ricardo's Theory of Comparative Benefits explains why countries that enjoy the advantage to make certain merchandise can still want to purchase the products from other countries. ANS: T DIF: Hard REF: 1-5b

nineteen. Most control today is more likely to be the result of the Theory of Comparative Benefit than by the Theory of Absolute Edge. ANS: Capital t DIF: Average REF: 1-5b

20. A country often loves a comparative advantage due to abundance of your particular creation factor (land, labor, capital, or entrepreneurship) within their borders. ANS: T DIF: Easy REF: 1-5c

1-2

Testbank 21 years old. The Component Endowment Theory was developed by Raymond Vernon. ANS: N DIF: Convenient REF: 1-5c

22. The International Product Life Cycle Theory explains how come there are zero televisions made from Great Britain and the United States, although that technology was invented in individuals countries. ANS: T DIF: Easy REF: 1-5d

3. A product is usually invented in Country By and is initially manufactured right now there. The Foreign Product Life Circuit Theory keeps that the item will be produce in developing countries within a year or two. ANS: Farrenheit DIF: Hard REF: 1-5d

24. Michael jordan Porter sights Silicon Valley can be an example of a " cluster” of development and manufacturing. ANS: Capital t DIF: Easy REF: 1-5e

25. Before the 1950s, the majority of the area rugs on the globe were manufactured in Persia (Iran) and Pakistan. Artisans during these...