Globalization has _____ the opportunities for a firm to expand its revenues by s
ID: 1221046 • Letter: G
Question
Globalization has _____ the opportunities for a firm to expand its revenues by selling around the world and _____ its costs by producing in nations where key inputs are cheap. reduced, reduced increased, increased increased, reduced reduced, increased Since the collapse of communism at the end of the 1980s, the erstwhile communist nations have transformed their economies by encouraging all of the following except: privatizing state-owned enterprises. regulating markets. increasing competition. welcoming investment by foreign businesses. Identify the incorrect statement concerning globalization. It has been blamed for unemployment in developed nations, environmental degradation and the Americanization of popular culture. It has created new threats for businesses accustomed to dominating their domestic markets. It is transforming industries and is highly welcomed by those who believed their jobs were protected from foreign competition. According to most economists it is a very beneficial process where gains outweigh the losses by a wide margin. In the U.S., _____ percent of firms that export are small companies employing fewer than 100 people. 90 75 50 30 Interdependent political, economic, and legal systems of a country make up its: administrative agenda. socioeconomic fabric. economic environment. political economy. ____ is consistent with the notion that an individual's right to do something may be restricted because it runs counter to "the good of society" or "the common good." Entrepreneurship Collectivism Free enterprise Capitalism According to _____, socialism can only be achieved through violent revolution. capitalists communists social democrats democrats _____ is/are best defined as shared assumptions about how things ought to be. Norms Values Society Culture __ are social conventions concerning things such as the appropriate dress code in a particular situation, good social manners, eating with the correct utensils, neighborly behavior, and the like. Values Beliefs Mores Folkways Mores are: the norms that are seen as central to the functioning of a society and its social life. the routine conventions of everyday life. abstract ideas about what a group believes to be right, good, and desirable. the social rules and guidelines that prescribe appropriate behavior in particular situations. The theory of _____, developed by Michael Porter, focuses on the importance of country factors, in addition to factor endowments, such as domestic demand and domestic rivalry in explaining a nation's dominance in the production and export of particular products. new trade absolute advantage comparative advantage national competitive advantage The theory of _____ makes a crude case for government involvement in promoting exports and limiting imports. mercantilism free trade absolute advantage comparative advantage By lowering production costs, _____ help domestic producers compete against foreign imports. tariffs duties quotas subsidies In the United States, the only firms allowed to import cheese are certain trading companies, each of which is allocated the right to import a maximum number of pounds of cheese each year. Identify the trade restriction being imposed by the United States. Import quota Subsidy Ad valorem tariff Specific tariff A quota rent is: a quota on trade imposed by the exporting country. levied as a fixed charge for each unit of a good imported. levied as a proportion of the value of the imported good. the extra profit producers make when supply is artificially limited by an import quota. Which of the following is not a reason why firms prefer to acquire existing assets rather than undertake greenfield investments? Foreign firms are acquired because those firms have valuable strategic assets. Firms make acquisitions because they believe they can increase the efficiency of the acquired unit by transferring capital, technology, or management skills. Even though greenfield investments are comparatively less risky for a firm, acquisitions always yield higher profits. Mergers and acquisitions are quicker to execute than greenfield investments. The rise in FDI in the services sector is a result of all of the following except: the general move in many developed countries away from manufacturing and toward services. accelerating regulations of services. many services cannot be traded internationally. many countries have liberalized their regimes governing FDI in services. Identify the theory that seeks to explain why firms often prefer foreign direct investment over licensing as a strategy for entering foreign markets. Internalization theory Internationalization theory Perfect markets theory Small markets theory An agreement between countries in a geographic region to reduce tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other is referred to as: regional economic integration. socioeconomic integration. political integration. economic-political integration. In 1991, Argentina, Brazil, Paraguay, and Uruguay implemented an agreement known as: NAFTA. MERCOSUR. APEC. FTAA. Which of the following is true of a common market? All barriers to the trade of goods and services among member countries are removed and each country maintains its own policy toward nonmember countries. It involves the free flow of products and factors of production between member countries and adoption of individual external trade policies. It has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members. It eliminates trade barriers between member countries and adopts a common external trade policy and a common currency. The rate at which one currency is converted into another is the: replacement percentage. resale rate. exchange rate. interchange ratio. The _____ helps us to compare the relative prices of goods and services in different countries. interest rate customs rate exchange rate tariff rate When two parties agree to exchange currency and execute the deal immediately, the transaction is a: point-in-time exchange. temporal exchange. spot exchange. forward exchange. If lots of people want euros and euros are in short supply, and a few people want Japanese yen and yen are in plentiful supply, the euro is likely to _____ against the yen. depreciate appreciate devalue stabilize If the demand for dollars outstrips its supply and if the supply of Japanese yen is greater than the demand for it, what will happen? The dollar will appreciate against the yen The dollar will depreciate against the yen The exchange rates will remain the same The yen will appreciate against the dollar
Explanation / Answer
Globalization has increased the opportunities for a firm to expand its revenues by selling around the world and decreased its costs by producing in nations where key inputs are cheap.
Since the collapse of communism at the end of the 1980s, the erstwhile communist nations have transformed their economies by encouraging all of the following except:
Privatizing state-owned enterprises.
Identify the incorrect statement concerning globalization.
It is transforming industries and is highly welcomed by those who believed their jobs were protected from foreign competition.
According to most economists it is a very beneficial process where gains outweigh the losses by a wide margin. In the U.S., 90 percent of firms that export are small companies employing fewer than 100 people.
Collectivism is consistent with the notion that an individual's right to do something may be restricted because it runs counter to "the good of society" or "the common good."
According to Communists, socialism can only be achieved through violent revolution.
Values are best defined as shared assumptions about how things ought to be.
Norms are social conventions concerning things such as the appropriate dress code in a particular situation, good social manners, eating with the correct utensils, neighborly behavior, and the like.
The theory of National competitive advantage, developed by Michael Porter, focuses on the importance of country factors, in addition to factor endowments, such as domestic demand and domestic rivalry in explaining a nation's dominance in the production and export of particular products.
The theory of Mercantilism makes a crude case for government involvement in promoting exports and limiting imports.
By lowering production costs, subsidies help domestic producers compete against foreign imports.
Identify the trade restriction being imposed by the United States.
Ad valorem tariff.
A quota rent is:
The extra profit producers make when supply is artificially limited by an import quota.
Which of the following is not a reason why firms prefer to acquire existing assets rather than undertake Greenfield investments?
Even though Greenfield investments are comparatively less risky for a firm, acquisitions always yield higher profits.
The rise in FDI in the services sector is a result of all of the following except:
Accelerating regulations of services.
Identify the theory that seeks to explain why firms often prefer foreign direct investment over licensing as a strategy for entering foreign markets:
Internalization theory.
An agreement between countries in a geographic region to reduce tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other is referred to as:
Regional economic integration.
In 1991, Argentina, Brazil, Paraguay, and Uruguay implemented an agreement known as:
MERCOSUR
Which of the following is true of a common market?
It eliminates trade barriers between member countries and adopts a common external trade policy and a common currency.
The rate at which one currency is converted into another is the:
Exchange rate.
The exchange rate helps us to compare the relative prices of goods and services in different countries.
When two parties agree to exchange currency and execute the deal immediately, the transaction is a:
Spot exchange.
If lots of people want euros and euros are in short supply, and a few people want Japanese yen and yen are in plentiful supply, the euro is likely to appreciate against the yen.
If the demand for dollars outstrips its supply and if the supply of Japanese yen is greater than the demand for it, what will happen?
The dollar will appreciate against the yen.
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