CMR 244 - Final Exam - Intro to Global Business with all
Correct & 100% Verified Answers |Already Graded A+
Mercantilism, absolute advantage, and comparative advantage are examples of modern theories
✔Correct Answer-false
The theory of comparative advantage states that even if a country does not have absolute advantage
in production, the country can still profitably specialize if the country is relatively more efficient.
✔Correct Answer-true
Indian innovation can reduce the price of US software exports and curtail the wage of the US IT
worker ✔Correct Answer-true
Managers should monitor and nurture current comparative advantages of certain locations and take
advantage of new locations ✔Correct Answer-true
The aggregation of importing and exporting by both sides leads to a: ✔Correct Answer-Both a
balance of trade and a trade surplus or deficit
The idea that governments should actively protect domestic industries from imports and vigorously
promote exports represents ✔Correct Answer-Protectionism
The theory of absolute advantage is: ✔Correct Answer-The economic advantage one nation enjoys
that is absolutely superior to other nations
An economic theory that accounts for changes in the patterns of trade over time is known as
✔Correct Answer-Product life cycle theory
The policy to assist strategic advantage is known as: ✔Correct Answer-Strategic trade policy
The national competitive advantage of industries depends on ✔Correct Answer-Related and
supporting industries
Domestic demand conditions
Country factor endowments and firm strategy, structure, and rivalry
Which of the following is the first theory to incorporate dynamic changes in patterns of trade
✔Correct Answer-Product life cycle
As a major tariff barrier, a(n) ____ is a tax imposed on imports. ✔Correct Answer-Import tariff
NTBs include: ✔Correct Answer-Subsidies, import quotas
Export restraints, local content requirements
Administrative policies, antidumping duties
Correct & 100% Verified Answers |Already Graded A+
Mercantilism, absolute advantage, and comparative advantage are examples of modern theories
✔Correct Answer-false
The theory of comparative advantage states that even if a country does not have absolute advantage
in production, the country can still profitably specialize if the country is relatively more efficient.
✔Correct Answer-true
Indian innovation can reduce the price of US software exports and curtail the wage of the US IT
worker ✔Correct Answer-true
Managers should monitor and nurture current comparative advantages of certain locations and take
advantage of new locations ✔Correct Answer-true
The aggregation of importing and exporting by both sides leads to a: ✔Correct Answer-Both a
balance of trade and a trade surplus or deficit
The idea that governments should actively protect domestic industries from imports and vigorously
promote exports represents ✔Correct Answer-Protectionism
The theory of absolute advantage is: ✔Correct Answer-The economic advantage one nation enjoys
that is absolutely superior to other nations
An economic theory that accounts for changes in the patterns of trade over time is known as
✔Correct Answer-Product life cycle theory
The policy to assist strategic advantage is known as: ✔Correct Answer-Strategic trade policy
The national competitive advantage of industries depends on ✔Correct Answer-Related and
supporting industries
Domestic demand conditions
Country factor endowments and firm strategy, structure, and rivalry
Which of the following is the first theory to incorporate dynamic changes in patterns of trade
✔Correct Answer-Product life cycle
As a major tariff barrier, a(n) ____ is a tax imposed on imports. ✔Correct Answer-Import tariff
NTBs include: ✔Correct Answer-Subsidies, import quotas
Export restraints, local content requirements
Administrative policies, antidumping duties
