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Which one of the following statements BEST explains the benefits of international trade to nations?
Job Creation
trade conditions occurs when a country is unable to produce a good more efficiently than other nations, but produces the good more efficiently than it does any other good
comparative advantage
What occurs in the absence of Trade Barriers
Free Trade
If a country takes action on its own to restrict the number of imports it sends to another in order to preserve political friendship.
Voluntary export restraint (VER)
The purchase of physical assets or a significant amount of the ownership (stock) of a company in another country in order to gain a measure of management control
Foreign direct investment (FDI)
Trade between which economies of the world represents the highest level of total world merchandise trade?
High-Income Economies
The ability of a nation to produce a good more efficiently than any other nation
absolute advantage
Name a government intervention that leads to a lack of competition?
protection of infant industries
An outright ban on products from a certain country such as the US has with Cuba.
Embargo
A greater share of global merger and acquisition activity are from what type of markets.
Emerging markets
The dangers of trade dependency become apparent when ________________.
economic recession or political turmoil
________ says that a company will begin by exporting its product and later undertake foreign direct investment. The theory also says that, for a number of reasons, a country's export eventually becomes its import.
product life cycle
A political motive behind government intervention in trade
Protecting jobs
A certain portion of the end product must consist of domestically produced goods or that a certain portion of the final cost of a product must come from domestic sources, this is the result of _________.
Local content requirement
Which form of investments is the majority of cross-border activities?
mergers and acquisitions
____________ advocates that nations should accumulate financial wealth, usually in the form of gold, by encouraging exports and discouraging imports.
Mercantilism
Firm strategy, stucture and rivialry are all part of __________________
Porter's diamond
Providing tax breaks and product price supports is considered to be a____________ ___________.
Government Subsidy
The practice of selling at below cost or below-home prices is an example of ____________.
Dumping
What is a compelling reason for the company to favor foreign direct investment over other options where you select your site based on natural or acquired characteristics.
location advantage
According to Adam Smith, a nation should concentrate on producing the goods in which it ________.
absolute advantage in producing the product
When a nation's competitiveness in an industry depends on the capacity of the industry to innovate and upgrade...
Competative advantage theory
A restriction on the amount (measured in units or weight) of a good that can enter or leave a country during a certain period of time?
Quota
The creation of the ________ was perhaps the greatest achievement of the 1986 Uruguay Round.
World Trade Organization
A theory that stipulates tight control when the firm's concern is controlling the company's activities
market imperfections