QUESTION 13 The view traces its roots to Marxist political and economic theory. OB free market OC pragmatic nationalism O D.conservative QUESTION 14 Which of the following is NOT a home-country policy OA Limiting capital outfows OB. Manipulating tax rules to encourage their firms to invest at home OC. Ofering government-backed insurance programs to multinationals OD. Prohibiting national firms from investing in certain countries for political reasons imiting outward FDI? QUESTION 15 Host governments use a range of controls to restrict FDI. The two most common are: OA monetary restraints and performance requirements. OB. technology transfer restraints and employment restraints. OC ownership restraints and performance requirements. OD. employment restraints and repatriation limitations. QUESTION 16 The of foreign direct investment refers to the amount of FDI undertaken over a given period (normally a year). The of foreign direct investment refers to the total accumulated value of foreign-owned assets at any time. OA portfolio, current OB fow, stock OC stock, flow OD.stockpile, portfolio QUESTION 17 A Paris-based intergovernmental organization of "wealthy" nations whose purpose is to provide its 29 member states with a forum in which governments can compare their experiences, discuss the problems they share, and seek solutions that can be applied within their own national contexts is called the: OA Council for Economic Strength. OB. Federation of Emerging Nations. OC Crganization for Economic Cooperation and Development. OD. Organization for Economic Strength and Global Leadership. QUESTION 18 Although it normally involves much longer-term commitments, franchising is essentially the service industry version of OA exporting OB.licensing OC FDI. OD. turnkey projects. QUESTION 19 The European Union effectively became a single market with 340 million consumers in 1993 and how many million consumers today? OA 370. OB. 800. OC 50 OD. 300. QUESTION 20 Nowhere has the movement toward regional economic integration been more successful than in OA Africa OB. South America OC. Asia QUESTION 21 Which type of agreement is the most popular form of regional economic integration, accounting for almost 90 percent of regional agreements? A. Customs union agreement OB. Free trade agreement OC Common market agreement OD. Political union agreement QUESTION 22 The following three countries implemented the North American Free Trade Agreement (NAFTA): OA Panama, Mexico, and the United States. OB. Canada, Brazil, and the United States. OC.United States, Argentina, and Mexico. OD. Canada, Mexico, and the United States. QUESTION 23 The free trade area known as MERCOSUR consists of the following four countries: OA Chile, Mexico, Columbia, and Paraguay OB. Argentina, Brazil, Paraguay, and Uruguay OC Chile, Brazil, Uruguay, and Columbia OD. Mexico, Columbia, Paraguay, and Uruguay QUESTION 24 Which of the following selections accurately depicts the levels of economic integration from least integrated to most integrated? OA Common market, economic union, full political union, free trade area, and customs union OB. Common market, economic union, full political union, free trade area, and customs union OC Free trade area, customs union, common market, economic union, and full political union O D. Full political union, free trade area, common market, customs union, and economic union QUESTION 25 In a theoretically ideal DA. common market OB. economic union OC. political union all barriers to trade of goods and services are removed between member countries

Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter31: Open-Economy Macroeconomics: Basic Concepts
Section: Chapter Questions
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Hey im sorry for not specifing id like answers 1-25 to be checked please thanks you , last expert for some very odd reason thought i only wanted 1 questioin solved...

QUESTION 1
occurs, according to the U.S. Department of Commerce, whenever a U.S. citizen, organization, or affiliated group takes an interest of 10 percent or more in a foreign business entity.
O A. Cross-boarder international investment
O B. Foreign direct investment
OC. Reciprocal foreign investment
O D. International capital investment
QUESTION 2
Why would a firm prefer to execute a green-field investment instead of acquiring an existing asset?
O A. Because green-field investments are slow to execute
O B. Because foreign firms have valuable strategic assets
O C. Because firms that acquire existing assets believe they can increase the asset's efficiency
O D. Because they want to have full control of design and layout
QUESTION 3
Which of the following involves granting a foreign entity the right to produce and sell the firm's product in return for a royalty fee on every unit sold?
O A. Franchising
O B. Exporting
OC. Licensing
O D. Foreign Direct Investment
QUESTION 4
When transportation costs are added to production costs, it becomes unprofitable to ship some products over a large distance. This is particularly true of products that have a(n):
O A. high value-to-weight ratio
O B. moderate value-to-weight ratio
O C. lowvalue-to-weight ratio
O D. extremely high value-to-weight ratio
QUESTION 5
Much foreign direct investment is undertaken as a response to actual or threatened
O A. trade barriers.
O B. economic sanctions.
O C. legal action.
O D. international appeals.
QUESTION 6
When
a firm will favor FDI over exporting as an entry strategy, according to the textbook.
O A. interest rates or government policy make exporting unattractive
O B. transportation costs or trade barriers make exporting unattractive
O C. cultural barriers or trade barriers make exporting unattractive
O D. cultural barriers or government policy make exporting unattractive
QUESTION 7
If a firm want to avoid bearing the costs of establishing production facilities in a foreign country, which of the following would be LEAST advisable?
O A. Exporting
O B. FDI
O C. Licensing
O D. Franchising
QUESTION 8
By limiting imports through quotas, governments increase the attractiveness of:
O A. FDland licensing.
O B. licensing and exporting.
O C. exporting and FDI.
O D. withdrawing from international markets.
QUESTION 9
In the 1960s, RCA licensed its leading-edge color television technology to a number of Japanese companies, which later took over the market. This demonstrates:
O A. Licensing is always better than FDI.
O B. There are certain capabilities that are often not amenable to licensing.
O C. Licensing may result in a firm's giving away valuable technological know-how to a potential foreign competitor.
O D. Licensing does not give a firm the tight control over manufacturing, marketing, and strategy in a foreign country that may be required to maximize its profitability.
QUESTION 10
The establishment of a wholly new operation in a foreign country is referred to as a(n):
O A. outplacement.
O B. green-field investment.
O C. newventure.
O D. exporting.
QUESTION 11
The
view argues that international production should be distributed among countries according to the theory of comparative advantage.
O A. conservative
O B. pragmatic nationalism
OC. free market
O D. radical
QUESTION 12
When a country is importing more goods and services than it is exporting, it is incurring a:
O A. current account surplus.
O B. current account deficit.
O C. payment surplus.
O D. payment deficit.
Transcribed Image Text:QUESTION 1 occurs, according to the U.S. Department of Commerce, whenever a U.S. citizen, organization, or affiliated group takes an interest of 10 percent or more in a foreign business entity. O A. Cross-boarder international investment O B. Foreign direct investment OC. Reciprocal foreign investment O D. International capital investment QUESTION 2 Why would a firm prefer to execute a green-field investment instead of acquiring an existing asset? O A. Because green-field investments are slow to execute O B. Because foreign firms have valuable strategic assets O C. Because firms that acquire existing assets believe they can increase the asset's efficiency O D. Because they want to have full control of design and layout QUESTION 3 Which of the following involves granting a foreign entity the right to produce and sell the firm's product in return for a royalty fee on every unit sold? O A. Franchising O B. Exporting OC. Licensing O D. Foreign Direct Investment QUESTION 4 When transportation costs are added to production costs, it becomes unprofitable to ship some products over a large distance. This is particularly true of products that have a(n): O A. high value-to-weight ratio O B. moderate value-to-weight ratio O C. lowvalue-to-weight ratio O D. extremely high value-to-weight ratio QUESTION 5 Much foreign direct investment is undertaken as a response to actual or threatened O A. trade barriers. O B. economic sanctions. O C. legal action. O D. international appeals. QUESTION 6 When a firm will favor FDI over exporting as an entry strategy, according to the textbook. O A. interest rates or government policy make exporting unattractive O B. transportation costs or trade barriers make exporting unattractive O C. cultural barriers or trade barriers make exporting unattractive O D. cultural barriers or government policy make exporting unattractive QUESTION 7 If a firm want to avoid bearing the costs of establishing production facilities in a foreign country, which of the following would be LEAST advisable? O A. Exporting O B. FDI O C. Licensing O D. Franchising QUESTION 8 By limiting imports through quotas, governments increase the attractiveness of: O A. FDland licensing. O B. licensing and exporting. O C. exporting and FDI. O D. withdrawing from international markets. QUESTION 9 In the 1960s, RCA licensed its leading-edge color television technology to a number of Japanese companies, which later took over the market. This demonstrates: O A. Licensing is always better than FDI. O B. There are certain capabilities that are often not amenable to licensing. O C. Licensing may result in a firm's giving away valuable technological know-how to a potential foreign competitor. O D. Licensing does not give a firm the tight control over manufacturing, marketing, and strategy in a foreign country that may be required to maximize its profitability. QUESTION 10 The establishment of a wholly new operation in a foreign country is referred to as a(n): O A. outplacement. O B. green-field investment. O C. newventure. O D. exporting. QUESTION 11 The view argues that international production should be distributed among countries according to the theory of comparative advantage. O A. conservative O B. pragmatic nationalism OC. free market O D. radical QUESTION 12 When a country is importing more goods and services than it is exporting, it is incurring a: O A. current account surplus. O B. current account deficit. O C. payment surplus. O D. payment deficit.
QUESTION 13
The
view traces its roots to Marxist political and economic theory.
O A. radical
O B. free market
O C. pragmatic nationalism
O D. conservative
QUESTION 14
Which of the following is NOT a home-country policy for limiting outward FDI?
O A. Limiting capital outflows
O B. Manipulating tax rules to encourage their firms to invest at home
OC. Offering government-backed insurance programs to multinationals
O D. Prohibiting national firms from investing in certain countries for political reasons
QUESTION 15
Host governments use a range of controls to restrict FDI. The two most common are:
O A. monetary restraints and performance requirements.
O B. technology transfer restra
O C. ownership restraints and performance requirements.
O D. employment restraints and repatriation limitations.
and employment restrair
QUESTION 16
The
of foreign direct investment refers to the amount of FDI undertaken over a given period (normally a year). The
of foreign direct investment refers to the total accumulated value of foreign-owned assets at any time.
O A. portfolio, current
O B. flow, stock
O C. stock, flow
O D. stockpile, portfolio
QUESTION 17
A Paris-based intergovernmental organization of "wealthy" nations whose purpose is to provide its 29 member states with a forum in which governments can compare their experiences, discuss the problems they share, and seek solutions that can be applied within their own national contexts is called the:
O A. Council for Economic Strength.
O B. Federation of Emerging Nations.
OC. Organization for Economic Cooperation and Development.
O D. Organization for Economic Strength and Global Leadership.
QUESTION 18
Although it normally involves much longer-term commitments, franchising is essentially the service industry version of:
O A. exporting.
O B. licensing.
O C. FDI.
O D. turnkey projects.
QUESTION 19
The European Union effectively became a single market with 340 million consumers in 1993 and how many million consumers today?
O A. 370.
O B. 800,
O C. 500.
O D. 300.
QUESTION 20
Nowhere has the movement toward regional economic integration been more successful than in
O A. Africa
O B. South America
O C. Asia
O D. Europe
QUESTION 21
Which type of agreement is the most popular form of regional economic integration, accounting for almost 90 percent of regional agreements?
O A. Customs union agreement
O B. Free trade agreement
O C. Common market agreement
O D. Political union agreement
QUESTION 22
The following three countries implemented the North American Free Trade Agreement (NAFTA):
O A. Panama, Mexico, and the United States.
O B. Canada, Brazil, and the United States.
O C. United States, Argentina, and Mexico.
O D. Canada, Mexico, and the United States.
QUESTION 23
The free trade area known as MERCOSUR consists of the following four countries:
O A. Chile, Mexico, Columbia, and Paraguay
O B. Argentina, Brazil, Paraguay, and Uruguay
OC. Chile, Brazil, Uruguay, and Columbia
O D. Mexico, Columbia, Paraguay, and Uruguay
QUESTION 24
Which of the following selections accurately depicts the levels of economic integration from least integrated to most integrated?
O A. Common market, economic union, full political union, free trade area, and customs union
O B. Common market, economic union, full political union, free trade area, and customs union
O C. Free trade area, customs union, common market, economic union, and full political union
O D. Full political union, free trade area, common market, customs union, and economic union
QUESTION 25
In a theoretically ideal
O A. common market
, all barriers to trade of goods and services are removed between member countries.
O B. economic union
O C. political union
O D. free trade area
Transcribed Image Text:QUESTION 13 The view traces its roots to Marxist political and economic theory. O A. radical O B. free market O C. pragmatic nationalism O D. conservative QUESTION 14 Which of the following is NOT a home-country policy for limiting outward FDI? O A. Limiting capital outflows O B. Manipulating tax rules to encourage their firms to invest at home OC. Offering government-backed insurance programs to multinationals O D. Prohibiting national firms from investing in certain countries for political reasons QUESTION 15 Host governments use a range of controls to restrict FDI. The two most common are: O A. monetary restraints and performance requirements. O B. technology transfer restra O C. ownership restraints and performance requirements. O D. employment restraints and repatriation limitations. and employment restrair QUESTION 16 The of foreign direct investment refers to the amount of FDI undertaken over a given period (normally a year). The of foreign direct investment refers to the total accumulated value of foreign-owned assets at any time. O A. portfolio, current O B. flow, stock O C. stock, flow O D. stockpile, portfolio QUESTION 17 A Paris-based intergovernmental organization of "wealthy" nations whose purpose is to provide its 29 member states with a forum in which governments can compare their experiences, discuss the problems they share, and seek solutions that can be applied within their own national contexts is called the: O A. Council for Economic Strength. O B. Federation of Emerging Nations. OC. Organization for Economic Cooperation and Development. O D. Organization for Economic Strength and Global Leadership. QUESTION 18 Although it normally involves much longer-term commitments, franchising is essentially the service industry version of: O A. exporting. O B. licensing. O C. FDI. O D. turnkey projects. QUESTION 19 The European Union effectively became a single market with 340 million consumers in 1993 and how many million consumers today? O A. 370. O B. 800, O C. 500. O D. 300. QUESTION 20 Nowhere has the movement toward regional economic integration been more successful than in O A. Africa O B. South America O C. Asia O D. Europe QUESTION 21 Which type of agreement is the most popular form of regional economic integration, accounting for almost 90 percent of regional agreements? O A. Customs union agreement O B. Free trade agreement O C. Common market agreement O D. Political union agreement QUESTION 22 The following three countries implemented the North American Free Trade Agreement (NAFTA): O A. Panama, Mexico, and the United States. O B. Canada, Brazil, and the United States. O C. United States, Argentina, and Mexico. O D. Canada, Mexico, and the United States. QUESTION 23 The free trade area known as MERCOSUR consists of the following four countries: O A. Chile, Mexico, Columbia, and Paraguay O B. Argentina, Brazil, Paraguay, and Uruguay OC. Chile, Brazil, Uruguay, and Columbia O D. Mexico, Columbia, Paraguay, and Uruguay QUESTION 24 Which of the following selections accurately depicts the levels of economic integration from least integrated to most integrated? O A. Common market, economic union, full political union, free trade area, and customs union O B. Common market, economic union, full political union, free trade area, and customs union O C. Free trade area, customs union, common market, economic union, and full political union O D. Full political union, free trade area, common market, customs union, and economic union QUESTION 25 In a theoretically ideal O A. common market , all barriers to trade of goods and services are removed between member countries. O B. economic union O C. political union O D. free trade area
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