Schools of Thought
Individual welfare, market-based resources, and comparative advantage align with which school of thought?
Liberalism
Which company is often criticized for outsourcing production to factories with poor labor conditions?
Nike
If Top Dog opens stores abroad because there is a prevalent consumer market for them, which part of the OLI framework does this represent?
Locational
Heckscher-Ohlin theory centers around the abundance or scarcity of what three factors?
Land, Labor, & Capital
When the U.S. taxed Chinese imports during the Donald Trump administration, it was using this tool.
Tariffs
If you’re worried imports are making your country weaker, you’re thinking like this school.
Mercantilism
This phenomenon suggests governments are about three times more influenced by neighboring countries’ policies than by competition like the race to the bottom or climb to the top.
Regional Peer Pressure
If Top Dog opens stores abroad, because their signature hot dogs are better than those elsewhere, which part of the OLI framework does this represent?
Ownership
This theory predicts that owners of a country’s abundant factor gain from trade, while owners of scarce factors lose.
Stolper-Samuelson Theory
Which country challenges the idea that democratization is necessary to attract foreign direct investment?
China
Class conflict, capitalist exploitation, and the state as an agent of capital align with which school of thought?
Marxism
Governments offering tax breaks while disregarding working conditions to attract companies is an example of?
Race to the bottom
An MNC choosing to build a factory to protect proprietary knowledge and maintain quality standards, which part of the OLI framework does this represent?
Internalization
The Rogowski model consists of which two cleavages?
class conflict & urban/rural conflict
What does an asterisk on a regression model mean?
An asterisk means the coefficient is statistically significant
Name the most important actor for each school of thought
Mercantilism: the state
Liberalism: individual
Marxism: classes
When countries improve wages or labor standards to attract investment instead, it’s called?
Climb to the top
If a company does not gain an advantage from internalizing production, it should choose this alternative strategy.
Licensing
When workers can easily move from one industry to another, economists call this.
What does PESTLES stand for?
politics, economics, social, technology, legal, environmental, and security
A country focusing on maximizing exports while limiting imports to build national power is following which school of thought?
Mercantilism
McDonald’s buying the farms that supplied their restaurants is an example of what?
Vertical Integration
What is an MNC?
A business operating in 2+ countries, including its home country
When business owners and landowners share interests against workers in trade debates, which cleavage is occurring?
Class conflict
This type of city government is more likely to offer larger incentives to multinational corporations.
mayor-council cities