DOWNLOAD THE Test Bank for International Business Competing and Coope
b b b b b b b b b
rating in Global World 1st Edition Geringer
b b b b b b
Module 02 International Trade and Investment
b b b b b
Trueb/bFalsebQuestions
1. RecordblevelsbofbAmericanboutwardbforeignbdirectbinvestmentbfromb2010btob2013,btotalingbmore
b thanb$1.4btrillion,bcausedbU.S.bexportsbtobdeclinebduringbthisbtimebperiod.
True False
2. Internationalbtradebincludesbexports,bimports,bandbforeignbdirectbinvestment.
True False
3. Nearlyb60bpercentbofbglobalboutputbisbnowbdestinedbforbinternationalbtrade.
True False
4. ThebproportionbofbworldbtradebcomingbfrombLatinbAmerica,bAfrica,bandbthebMiddlebEastbhas
b decreasedbsinceb1980.
True False
5. Allbregionsbofbthebworldbexperiencedbanbabsolutebincreasebinbthebdollarbvolumebofbtheirbservicesb
exportsbsinceb1980,balthoughbthebU.S.bproportionbhasbrisenbbybapproximatelybone-
thirdbsincebthatbtime.
True False
6. Inb2013,bthebtopb10bexportingbandbimportingbnationsbcollectivelybaccountedbforboverbhalfbofball
b exportsbandbimportsbofbmerchandisebandbservicesbworldwide.
True False
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7. Approximatelybtwo-thirdsbofbthebexportsbfrombdevelopedbcountriesbgobtobdevelopedbcountries.
True False
8. Thebdevelopmentbofbexpandedbregionalbtradebagreements,bsuchbasbthebAssociationbofbSoutheastbA
sianbNations,bMercosur,bandbthebEU,bcanbsubstantiallybalterbtheblevelbandbproportionbofbtradebflowsb
withinbandbacrossbregions.
True False
9. Therebarebabnumberbofbadvantagesbinbfocusingbattentionbonbabnationbthatbisbalreadybabsizable
b purchaserbofbgoodsbcomingbfrombthebwould-bebexporter'sbcountry.
True False
10. Thebfirstbformulationbofbinternationalbtradebtheory,bbybAdambSmith,bwasbmotivatedbbybpolitical
b considerations.
True False
11. Thebcentralbideabofbmercantilismbisbtherebshouldbbebanbexportbsurplusbsobabnationbcanbaccumulate
b preciousbmetals.
True False
12. Thebtheorybofbabsolutebadvantagebsuggestsbthatbunderbfree,bunregulatedbtrade,beachbnationbshould
b specializebinbproducingbthosebgoodsbitbcanbproducebmostbefficiently,bbasedbonbnaturallyboccurring
b endowmentsbsuchbasbminerals.
True False
13. Accordingbtobthebtheorybofbcomparativebadvantage,babnationbcanbgainbfrombtradebifbitbisbnotbequally
b lessbefficientbinbproducingbtwobgoods.
True False
2-2
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14. IfbabChinesebworkerbearnsb$1.00babday,bthenbgoodsbproducedbbybthisbworkerbwillbcostblessbthanbthe
b samebgoodsbproducedbbybanbAmericanbearningb$18.00banbhour.
True False
15. Currencybdevaluationbhelpsbabnationbavoidblosingbmarketsbandbregainbcompetitivenessbinbworld
b markets.
True False
16. AbtheorybdevelopedbbybElibHeckscherbandbBertilbOhlinbatbthebStockholmbSchoolbofbEconomicsbsugg
estsbthatbdifferencesbinbresourcebendowmentsbwillbmakebdevelopedbcountriesbmoreblikelybtobtradeb
withbdevelopedbcountriesbwhosebresourcebendowmentsbareblikelybtobbebverybsimilar,bthanbwithbdevel
opingbcountriesbwhosebendowmentsbarebdissimilar.
True False
17. Accordingbtobthebtext,bdifferencesbinbtaste,babdemandbvariable,bcanbreversebthebdirectionbofbtrade
b predictedbbybthebtheory.
True False
18. Thebinternationalbproductblife-
cyclebtheorybmaybhavebitsbgreatestbusefulnessbinbexplainingbtradebandbinvestmentbbehaviorbwhenbin
ternationalbfirmsbintroducebtheirbnewbproductsbinbhomebmarketsbfirst.
True False
19. Thebpredictablebdeclinebinbthebaveragebcostbofbproducingbeachbunitbofboutputbasbabproduction
b facilitybgetsblargerbandboutputbincreasesbisbknownbasbthebexperiencebcurve.
True False
20. MichaelbPorterbclaimsbthatbdemandbconditions,bfactorbconditions,brelatedbandbsupportingbindustries,
b andbfirmbstrategy,bstructure,bandbrivalry,bratherbthanbgovernmentbandbchance,barebfactorsbthatbaffec
tbnationalbcompetitiveness.
True False
2-3
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21. Importingbandbforeignbdirectbinvestmentbarebtwobapproachesbtobmeetingboverseasbdemand.
True False
22. Portfoliobinvestmentbisbthebpurchasebofbsufficientbstockbinbabfirmbtobobtainbsignificantbmanagement
b control.
True False
23. ThebproportionbofbtheboutstandingbstockbofbforeignbdirectbinvestmentbaccountedbforbbybthebUnited
b Statesbdeclinedbbybtwo-thirdsboverbthebpastb20byears.
True False
24. TheboverallbvolumebofboutwardbFDIbfrombdevelopingbnationsbinb2013bwasbfourbtimesbtheblevelbin
b 2003.
True False
25. ThebvastbproportionbofboutwardbFDI,baboutbtwo-thirds,boriginatesbfrombthebdevelopedbcountries.
True False
26. Worldwide,bthebvolumebofbFDIbflowingbintobthebdevelopingbcountriesbasbabwholebwasbsevenbtimes
b largerbinb2000bthanbinb1990bandbhadbnearlybtripledbagainbbyb2013.
True False
27. Foreignbdirectbinvestmentbmaybbebanbattemptbbybforeignbcompaniesbtobestablishbcompetitivebadva
ntageboverbpotentialbcompetitorsbinbotherbmarkets,bduebtobpossessionbofbadvantagesbnotbavailable
b toblocalbfirms.bSuchbadvantagesbpossessedbbybforeignbcompaniesboverbtheirblocalbcompetitorsbincl
udebknowledgebaboutblocalbmarketbconditionsbandbcostbefficienciesbfromboperatingbatbabdistance.
True False
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Copyrightb©b2016bMcGraw-
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b b b b b b b b b
rating in Global World 1st Edition Geringer
b b b b b b
Module 02 International Trade and Investment
b b b b b
Trueb/bFalsebQuestions
1. RecordblevelsbofbAmericanboutwardbforeignbdirectbinvestmentbfromb2010btob2013,btotalingbmore
b thanb$1.4btrillion,bcausedbU.S.bexportsbtobdeclinebduringbthisbtimebperiod.
True False
2. Internationalbtradebincludesbexports,bimports,bandbforeignbdirectbinvestment.
True False
3. Nearlyb60bpercentbofbglobalboutputbisbnowbdestinedbforbinternationalbtrade.
True False
4. ThebproportionbofbworldbtradebcomingbfrombLatinbAmerica,bAfrica,bandbthebMiddlebEastbhas
b decreasedbsinceb1980.
True False
5. Allbregionsbofbthebworldbexperiencedbanbabsolutebincreasebinbthebdollarbvolumebofbtheirbservicesb
exportsbsinceb1980,balthoughbthebU.S.bproportionbhasbrisenbbybapproximatelybone-
thirdbsincebthatbtime.
True False
6. Inb2013,bthebtopb10bexportingbandbimportingbnationsbcollectivelybaccountedbforboverbhalfbofball
b exportsbandbimportsbofbmerchandisebandbservicesbworldwide.
True False
2-1
Copyrightb©b2016bMcGraw-
HillbEducation.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwrittenbconsentbofb McGraw-HillbEducation.
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b b b b b b b b b
rating in Global World 1st Edition Geringer
b b b b b b
7. Approximatelybtwo-thirdsbofbthebexportsbfrombdevelopedbcountriesbgobtobdevelopedbcountries.
True False
8. Thebdevelopmentbofbexpandedbregionalbtradebagreements,bsuchbasbthebAssociationbofbSoutheastbA
sianbNations,bMercosur,bandbthebEU,bcanbsubstantiallybalterbtheblevelbandbproportionbofbtradebflowsb
withinbandbacrossbregions.
True False
9. Therebarebabnumberbofbadvantagesbinbfocusingbattentionbonbabnationbthatbisbalreadybabsizable
b purchaserbofbgoodsbcomingbfrombthebwould-bebexporter'sbcountry.
True False
10. Thebfirstbformulationbofbinternationalbtradebtheory,bbybAdambSmith,bwasbmotivatedbbybpolitical
b considerations.
True False
11. Thebcentralbideabofbmercantilismbisbtherebshouldbbebanbexportbsurplusbsobabnationbcanbaccumulate
b preciousbmetals.
True False
12. Thebtheorybofbabsolutebadvantagebsuggestsbthatbunderbfree,bunregulatedbtrade,beachbnationbshould
b specializebinbproducingbthosebgoodsbitbcanbproducebmostbefficiently,bbasedbonbnaturallyboccurring
b endowmentsbsuchbasbminerals.
True False
13. Accordingbtobthebtheorybofbcomparativebadvantage,babnationbcanbgainbfrombtradebifbitbisbnotbequally
b lessbefficientbinbproducingbtwobgoods.
True False
2-2
Copyrightb©b2016bMcGraw-
HillbEducation.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwrittenbconsentbofb McGraw-HillbEducation.
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b b b b b b b b b
rating in Global World 1st Edition Geringer
b b b b b b
14. IfbabChinesebworkerbearnsb$1.00babday,bthenbgoodsbproducedbbybthisbworkerbwillbcostblessbthanbthe
b samebgoodsbproducedbbybanbAmericanbearningb$18.00banbhour.
True False
15. Currencybdevaluationbhelpsbabnationbavoidblosingbmarketsbandbregainbcompetitivenessbinbworld
b markets.
True False
16. AbtheorybdevelopedbbybElibHeckscherbandbBertilbOhlinbatbthebStockholmbSchoolbofbEconomicsbsugg
estsbthatbdifferencesbinbresourcebendowmentsbwillbmakebdevelopedbcountriesbmoreblikelybtobtradeb
withbdevelopedbcountriesbwhosebresourcebendowmentsbareblikelybtobbebverybsimilar,bthanbwithbdevel
opingbcountriesbwhosebendowmentsbarebdissimilar.
True False
17. Accordingbtobthebtext,bdifferencesbinbtaste,babdemandbvariable,bcanbreversebthebdirectionbofbtrade
b predictedbbybthebtheory.
True False
18. Thebinternationalbproductblife-
cyclebtheorybmaybhavebitsbgreatestbusefulnessbinbexplainingbtradebandbinvestmentbbehaviorbwhenbin
ternationalbfirmsbintroducebtheirbnewbproductsbinbhomebmarketsbfirst.
True False
19. Thebpredictablebdeclinebinbthebaveragebcostbofbproducingbeachbunitbofboutputbasbabproduction
b facilitybgetsblargerbandboutputbincreasesbisbknownbasbthebexperiencebcurve.
True False
20. MichaelbPorterbclaimsbthatbdemandbconditions,bfactorbconditions,brelatedbandbsupportingbindustries,
b andbfirmbstrategy,bstructure,bandbrivalry,bratherbthanbgovernmentbandbchance,barebfactorsbthatbaffec
tbnationalbcompetitiveness.
True False
2-3
Copyrightb©b2016bMcGraw-
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b b b b b b b b b
rating in Global World 1st Edition Geringer
b b b b b b
21. Importingbandbforeignbdirectbinvestmentbarebtwobapproachesbtobmeetingboverseasbdemand.
True False
22. Portfoliobinvestmentbisbthebpurchasebofbsufficientbstockbinbabfirmbtobobtainbsignificantbmanagement
b control.
True False
23. ThebproportionbofbtheboutstandingbstockbofbforeignbdirectbinvestmentbaccountedbforbbybthebUnited
b Statesbdeclinedbbybtwo-thirdsboverbthebpastb20byears.
True False
24. TheboverallbvolumebofboutwardbFDIbfrombdevelopingbnationsbinb2013bwasbfourbtimesbtheblevelbin
b 2003.
True False
25. ThebvastbproportionbofboutwardbFDI,baboutbtwo-thirds,boriginatesbfrombthebdevelopedbcountries.
True False
26. Worldwide,bthebvolumebofbFDIbflowingbintobthebdevelopingbcountriesbasbabwholebwasbsevenbtimes
b largerbinb2000bthanbinb1990bandbhadbnearlybtripledbagainbbyb2013.
True False
27. Foreignbdirectbinvestmentbmaybbebanbattemptbbybforeignbcompaniesbtobestablishbcompetitivebadva
ntageboverbpotentialbcompetitorsbinbotherbmarkets,bduebtobpossessionbofbadvantagesbnotbavailable
b toblocalbfirms.bSuchbadvantagesbpossessedbbybforeignbcompaniesboverbtheirblocalbcompetitorsbincl
udebknowledgebaboutblocalbmarketbconditionsbandbcostbefficienciesbfromboperatingbatbabdistance.
True False
2-4
Copyrightb©b2016bMcGraw-
HillbEducation.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwrittenbconsentbofb McGraw-HillbEducation.
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