47. Joint ventures may lead to
a.
Welfare increases
b.
Welfare decreases
c.
No changes in welfare
d.
All of the above
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
International Joint Ventures
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
48. Foreign direct investment typically occurs when
a.
The earnings of the parent company are invested in plant expansion overseas
b.
The parent company transfers jobs overseas
c.
The parent company closes its foreign production plants
d.
The parent company purchases bonds of foreign governments
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
The Multinational Enterprise
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
Copyright Cengage Learning. Powered by Cognero.
Page 22
49. Consider Figure 9.3, at labor market equilibrium with supply S0, _____ workers are hired at a wage rate of $____ per
hour, while total wages equal ____.
a.
b.
c.
d.
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 9.3
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
International Labor Mobility: Migration
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
50. Consider Figure 9.3. At labor market equilibrium, the payment to Mexican capital owners equals:
a.
3 pesos
b.
6 pesos
c.
9 pesos
d.
12 pesos
Copyright Cengage Learning. Powered by Cognero.
Page 23
ANSWER:
a
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 9.3
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
International Labor Mobility: Migration
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
51. Consider Figure 9.3. If Honduran migration to Mexico results in the labor force increasing to 12 workers, denoted by
schedule S1, the:
a.
Wage rate for native Mexican workers decreases and the payments to Mexican capital owners increases
b.
Wage rate for native Mexican workers decreases and the payments to Mexican capital owners decreases
c.
Wage rate for native Mexican workers increases and the payments to Mexican capital owners increases
d.
Wage rate for native Mexican workers increases and the payments to Mexican capital owners decreases
ANSWER:
a
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 9.3
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
International Labor Mobility: Migration
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
52. Consider Figure 9.3. Policies that permit Honduran workers to freely migrate to Mexico would likely be resisted by:
a.
Mexican capital owners
b.
Native Mexican workers
c.
Mexican capital owners and native Mexican workers
d.
Neither Mexican capital owners nor native Mexican workers
ANSWER:
b
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 9.3
Copyright Cengage Learning. Powered by Cognero.
Page 24
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
International Labor Mobility: Migration
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
53. International trade in goods and services and flows of productive factors are substitutes for each other.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
The Multinational Enterprise
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
54. Most multinational corporations have a low ratio of foreign sales to total sales, usually 5 percent or less.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
The Multinational Enterprise
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
55. Vertical integration occurs if a parent multinational corporation establishes foreign subsidiaries to produce
intermediate goods or inputs that go into the production of a finished good.
a.
True
b.
False
ANSWER:
True
POINTS:
1
Copyright Cengage Learning. Powered by Cognero.
Page 25
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
The Multinational Enterprise
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
56. Exxon Oil Co. would undertake forward vertical integration if its retailing division acquired oil wells in the Middle
East.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
The Multinational Enterprise
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
57. Forward vertical integration would occur if a U.S. automobile manufacturer acquired a German subsidiary.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
The Multinational Enterprise
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
58. Most vertical foreign investment, as implemented by multinational corporations, is “forward” in nature rather than
“backward.”
Copyright Cengage Learning. Powered by Cognero.
Page 26
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
The Multinational Enterprise
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
59. Horizontal integration would occur if General Motors sets up a subsidiary in Mexico to produce automobiles identical
to those that it produces in the United States.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
The Multinational Enterprise
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
60. Multinational corporations sometimes locate manufacturing subsidiaries abroad to avoid tariff barriers which would
place their products at a competitive disadvantage in a foreign country.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
The Multinational Enterprise
KEYWORDS:
BLOOM’S: Understand
Copyright Cengage Learning. Powered by Cognero.
Page 27
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
61. Foreign direct investment would occur if Mobile Inc. of the United States acquired sufficient common stock in a
foreign oil company to assume voting control.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Motives for Foreign Direct Investment
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
62. Foreign direct investment would occur if Microsoft Inc. of the United States purchased securities of the French
government.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Motives for Foreign Direct Investment
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
63. Conglomerate integration would occur if General Motors Inc. of the United States acquired a controlling interest in a
British chemical company.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
Copyright Cengage Learning. Powered by Cognero.
Page 28
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
The Multinational Enterprise
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
64. Both economic theory and empirical studies support the notion that foreign direct investment is conducted in
anticipation of future profits.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Motives for Foreign Direct Investment
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
65. Multinational corporations often locate manufacturing operations abroad in order to take advantage of foreign
resource endowments or wage scales.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Supplying Products to Foreign Buyers: Whether to Produce Domestically or Abroad
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
66. If the size of the Canadian market is large enough to permit efficient production in Canada, a U.S. firm would profit
by establishing a Canadian manufacturing subsidiary or licensing rights to a Canadian firm to manufacture and sell its
product in Canada.
a.
True
b.
False
Copyright Cengage Learning. Powered by Cognero.
Page 29
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Supplying Products to Foreign Buyers: Whether to Produce Domestically or Abroad
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
67. There is virtually universal agreement among economists that foreign direct investment in the United States has
reduced the economic welfare of the average U.S. citizen.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Motives for Foreign Direct Investment
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
68. Foreign-owned companies in the United States operate under more strict antitrust, environmental, and other
regulations than U.S.-owned companies.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Motives for Foreign Direct Investment
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
Copyright Cengage Learning. Powered by Cognero.
Page 30
69. During the 1980s and 1990s, Japanese auto firms established manufacturing facilities in the United States known as
“transplants.”
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Japanese Transplants in the U.S. Automobile Industry
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
70. By establishing transplant factories in the United States, Japanese automakers were able to avoid export restrictions
imposed by the Japanese government, but not import restrictions imposed by the U.S. government.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Japanese Transplants in the U.S. Automobile Industry
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
71. Mergers differ from joint ventures in that they involve the creation of a new business firm, rather than the union of
two existing companies.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
Copyright Cengage Learning. Powered by Cognero.
Page 31
TOPICS:
The Multinational Enterprise
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
72. Developing countries, such as Mexico and India, often close their borders to foreign companies unless they are willing
to take on partner companies in developing countries.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
International Joint Ventures
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
73. In natural-resource oriented industries, such as oil and copper, joint ventures have often been formed by several
companies since the cost of resource-extraction may be prohibitively large for a particular company.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
International Joint Ventures
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
74. International joint ventures tend to yield a welfare increasing market-power effect and a welfare decreasing cost-
reduction effect.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
Copyright Cengage Learning. Powered by Cognero.
Page 32
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
International Joint Ventures
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
75. A joint venture leads to increases in national welfare if the cost-reduction effect is due to wage concessions and if it
more than offsets the market-power effect.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
International Joint Ventures
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
76. A joint venture leads to increases in national welfare if its cost-reduction effect is due to productivity gains and if it
more than offsets the market-power effect.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
International Joint Ventures
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
77. Joint ventures lead to losses in national welfare when the newly established business adds to pre-existing production
capacity and fosters additional competition.
a.
True
Copyright Cengage Learning. Powered by Cognero.
Page 33
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
International Joint Ventures
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
78. Joint ventures lead to national welfare gains if the newly established business yields productivity increases that would
have been unavailable if each parent performed the same function separately.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
International Joint Ventures
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
79. A joint venture along two large competing companies tends to yield a market-power effect, which results in a
reduction in consumer surplus, that is not offset by a corresponding gain to producers.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
International Joint Ventures
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
Copyright Cengage Learning. Powered by Cognero.
Page 34
DATE MODIFIED:
6/22/2016 3:22 PM
80. If a joint venture among competing firms is able to cut costs by extracting wage concessions from domestic workers,
national welfare increases.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
International Joint Ventures
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
81. Critics of multinational corporations maintain that they often abandon domestic workers in order to take advantage of
lower wage scales abroad.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Multinational Enterprises as a Source of Conflict
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
82. The theory of multinational enterprise is totally inconsistent with the principle of comparative advantage.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
Copyright Cengage Learning. Powered by Cognero.
Page 35
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
International Trade Theory and Multinational Enterprise
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
83. Due to transfer-pricing problems, multinational corporations must shift profits away from countries with low corporate
tax rates to high tax-rate countries, thus absorbing a larger tax bite.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Multinational Enterprises as a Source of Conflict
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
84. The operations of an MNE have little effect on employment in either the host country or the home country.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Multinational Enterprises as a Source of Conflict
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:22 PM
DATE MODIFIED:
6/22/2016 3:22 PM
85. In the short run, the home country of an MNE will likely experience an employment decline when production is
shifted overseas.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate