Multinational Business Final Exam Pt 1

Front 1

firm based thoeries of international trade are useful in understanding trade in

Back 1

differentiated goods, e.g automobiles and consumer electronics

Front 2

modern supporters of merchantilism are called

Back 2

NEOMERCANTILISTS AND PROTECTIONISTS

Front 3

the _______thory says that most trade in manufactured goods should be between countries with sismiliar per capita GDP

Back 3

Country similarity

Front 4

In the______stage of the international product life -cycle the innovating firms country is a net importer of the product

Back 4

standardized

Front 5

who developed the theory of national competitive advantage?

Back 5

Michael Porter

Front 6

______factors do not influence a firms decision to undertake foreign direct investment.

Back 6

relative endowment

Front 7

the ______establishes the rules by which countries value and exchange their currencies

Back 7

international monetary fund

Front 8

the gold standard created a ___system

Back 8

the fixed exchange rate

Front 9

In 1944 the bretton Woods conferees agreed to

Back 9

renew the gold standard

Front 10

loans from the world bank may not be used to finance

Back 10

trade deficits

Front 11

the ______account records a nation's gold, convertible currencies, SDR's and reserve position at the IMF

Back 11

official reverves

Front 12

The ____shows the net balance resulting from merchandise trade, service trade, investment income and gifts.

Back 12

Current accounts

Front 13

the _____sets monetary policy for the European Union

Back 13

European central bank

Front 14

a____quoate is the price of some foreign currency in terms of a home country

Back 14

direct

Front 15

what percentage of foreign-exchange transactions are spot transactions

Back 15

40%

Front 16

A currency whose forward price is less than the spot price is elling at

Back 16

a forward discount

Front 17

_______is riskless purchase of a product in one market for immediate reslae in another to profit from a price difference

Back 17

Arbitrage

Front 18

When an oversees bank is separately incorporated from the parent bank, it is called a _______bank

Back 18

subsidiary

Front 19

the argument that holds that acountry must be self sufficient in critical raw materials, machinery, and technology is

Back 19

the national defense argument

Front 20

the _____startegy says that a nation should encourage firms to compete abroad by explioting some advantage that they have

Back 20

export promotion

Front 21

A ___tariff is levied as goods move through one counrty on the way to another

Back 21

transit

Front 22

____make it more difficult for inporters of non essential goods to acquire foreign exchange

Back 22

currency controls

Front 23

A ___Zone is a geographic area where imported or exported goods recieve preferential tax treatment.

Back 23

foreign trade

Front 24

The ___is the ifrst to investigat ecomplaints fro firms affected by alledged unfair trade practices in the u.s.A

Back 24

International trade administration

Front 25

Which countries are granted most-favored -nation status under the GATT

Back 25

any GATT-member country as a minimum

Front 26

the European Union now has

Back 26

27 members

Front 27

the european court of justice sits in

Back 27

Luxembourg

Front 28

the EU uses a ________in areas such as health, consumer policy, and free movement of workers

Back 28

co-decision procedure

Front 29

Which of these in NOT a member of the European free trade Association

Back 29

Austria

Front 30

According to the provisions of the NAFTA the USA may bar foreign ownership of the ___industry

Back 30

airline