International Business Essay

1692 words - 7 pages

International Economics IB2013b/IB2013c
Final Exam (90 mins)

MULTIPLE CHOICE QUETIONS (circle the correct answers)
1. The term "gains from trade" describes:
a. Producer surplus.
b. The fact that when two countries trade, both are better off.
c. Profits made by businessmen involved in international trade.
d. Consumer surplus.
e. The income of middlemen in a transaction.
2. In its most basic form, the gravity model says that the most important factors that describe the amount of trade between countries are
a. differences in the amount of workers and physical capital between countries.
b. differences in wages and technology between countries.
c. the cultural ...view middle of the document...

c. the gross weight of products that are exported from a domestic country.
d. the gross weight of products that are imported into a domestic country.
e. the gross profits from products that are exported from a domestic country.
6. In the Ricardian model:
a. Trade will happen even if countries are identical.
b. There is only one factor of production.
c. Differences in factor endowments give rise to trade.
d. There is only one industry in each country.
e. Countries can run trade deficits and surpluses.
7. Country A has 5000 units of labor. It takes 500 units of labor to produce one computer and 10 unit to create a Web page. What is the opportunity cost of a Web page in terms of computers?
a. 10
b.  0.02
c.  50
d.  100
e.  0.0002
8. The opportunity cost of producing computers in terms of Web pages is 50 in Country A and is 10 in Country B. Based on the Ricardian model, what can we conclude about the pattern of trade?
a. Country A will export Web pages and import computers.
b. We need to know what wages are to answer this question.
c. We need to know what the relative price of computers in terms of web pages is to answer this question.
d. Country A will export computers and import Web pages.
e. Trade will not occur.
9. In the Ricardian model, when two countries trade freely, the relative price of the goods they are trading is determined by:
a. Relative demand and relative supply for each trading country.
b. Relative demand and relative supply on the world market.
c. Relative wages.
d. Relative opportunity costs in the two countries.
10. Country A has 100 units of labor and Country B has 200 units of labor. Both countries produce computers and Web pages. The unit labor requirements are given in the table below:
| Computers | Web pages |
Country A | 100 | 2 |
Country B | 200 | 2 |
Assume free trade exists and that the relative price is such that both countries specialize completely in the industry in which they have a comparative advantage (neither country produces both goods). The supply of computers relative to Web pages will be:
a. 0.01 (or 1/100)
b. Impossible to determine without knowing the relative price of computers in terms of Web pages.
c. 0.02 (or 1/50)
d. 0.013 (or 1/75)
11. In the Ricardian model, when two countries trade freely, the relative price of the goods they are trading is determined by:
a. Relative demand and relative supply for each trading country.
b. Relative demand and relative supply on the world market.
c. Relative wages.
d. Relative opportunity costs in the two countries.
12. Which of the following is true?
a. Trade only hurts countries with lower wages.
b. Countries that open up for trade see their wages fall over time relative to U.S. wages.
c. Countries that open up for trade see their wages rise over time relative to U.S. wages.
d. Trade...

Other Papers Like International Business

International Business Cultural Analysis Preliminary Essay

909 words - 4 pages Japanese businessman into his wallet and then into his pants pocket. This was very insulting to the Japanese businessman. In the United States, most business people accept cards, and either place in wallet or a card holder. Another area to understand with cultural diversity is dress and appearance are important in many cultures; the analysis should uncover cultural influence over dress as it relates to local as well as international business

A Project Report On International Business

9066 words - 37 pages A PROJECT REPORT ON “A DISSERTATION ON RETAIL BANKING” In Partial Fulfillment of Bachelor of Business Administration Session 2010-2013 [pic] ICFAI University, Ranchi, Jharkhand Project Supervisor: Submitted by: Prof. Sumit Sinha Prof. Sumit Sinha Faculty of International Business Faculty

Business Culture In International Business: From Collision To An Understanding

688 words - 3 pages Book review: “Business culture in international business: from collision to an understanding” written by Richard D. Lewis Prepared by Kamalov Artem In the present time Internalization of business and economics has become a global problem. Entrepreneurship goes far beyond national boundaries, drawing into its orbit increasing number of people with different cultural views. As a result cultural differences are starting to play an increasing role

International Business

1754 words - 8 pages   Q1 a) Why would many Cityvision stockholder sell for cash rather thanBlockbuster stock? Ans. Many Cityvision stockholder sell for cash rather than Blockbuster stock because – In cash transaction acquiring shareholders take all the risk that theexpected synergy value embedded in the acquisition premium will notmaterialize, where as when we deal is stock the risk is spread andshared with the acquired shareholders too.In a cash deal it is

International Business

620 words - 3 pages bolstered in 1995 when Codex Alimentarius, the international food standards body of the UN’s Food and Agriculture Organization and the World Health Organization, approved the use of growth hormones. In making this decision, Codex reviewed the scientific literature and found no evidence of a link between the consumption of hormone-treated meat and human health problems, such as cancer. Fortified by such decisions, in 1995 the United States

International Business

768 words - 4 pages ), 72 percent think the stock market is in good shape, and 33 percent think it is improving.Views are similarly positive about the local housing market; 64 percent say it is good. References: 1.http://www.kurdishinfo.com/isis-good-business-turkey 2.http://www.internationalpolicydigest.org/2014/08/26/isis-actually-good-u-s-strategy-region/ 3.http://www.cbsnews.com/news/how-americans-are-feeling-about-the-fight-against-isis-economy/

International Business Letter

966 words - 4 pages Chief Business Officer  Shaoling Enterprise  Shanghai, China  Dear Mr. Xiang Fu Liu, I am proud to introduce the expansion project of Happy Patty and would like to take this time to introduce the company and its business to you. Established in Texas 2013, our company takes pride in exceeding the standard to give our customers the best food and services possible. We strongly believe in creating an enjoyable long-term bond with customers

International Marketing

4196 words - 17 pages INTERNATIONAL MARKETING CHAPTER 1 – GLOBAL MARKETING IN THE FIRM Globalization – Reflects the trends of firms buying, developing, producing and selling products and services in most countries of the world Comparison of the Global Marketing and Management style between SMEs and LSEs * Resources (Financial, Business Education) * Formation of Strategy * Organization * Risk-taking * Flexibility * Economies of Scale and

International Economics

4658 words - 19 pages ECF5921 Introduction to International Economics Assignment Question 1 Based on the article and other related readings of your choice, discuss the economic and social factors that have caused individual behavior to shift towards the consumption of unhealthy foods and unhealthy lifestyles. Compare ‘fat taxes’ and other alternatives that can be used address the problem. Which one would you recommend? Why? Answer Based on the article

International Finance

2513 words - 11 pages bureaucracy - Bureaucracy can delay an MNC’s efforts to establish a new subsidiary or expand business in a country. 7. Corruption – Corruption can occur at the firm level or with firm-government interactions. Transparency International has derived a corruption index for most countries (see www.transparency.org). 5 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a

International Expansion

2056 words - 9 pages International Expansion Elena Popova Professor Steven Englehart International Business Strategy 10/27/2013 Strayer University 1. Develop a revised international product life cycle plan As the global economy continues to stumble, retailers are struggling to achieve growth domestically. While there are pockets of opportunity, many retail sectors in the United States are saturated and not expected to grow much, if at all. Growth may be

Related Essays

International Business Essay 2900 Words

2900 words - 12 pages CHAPTER 6 BUSINESS-GOVERNMENT TRADE RELATIONS LEARNING OBJECTIVES: 1. Describe the political, economic, and cultural motives behind governmental intervention in trade. 2. List and explain the methods governments use to promote international trade. 3. List and explain the methods governments use to restrict international trade. 4. Discuss the importance of the World Trade Organization in promoting free trade

International Business Essay 577 Words

577 words - 3 pages International Business Individual Assignment The assignment is based on the differences in healthcare provided by Ghana and the United States of America. Based on the article, it states how poor the Ghana healthcare system is and how poorly the operations are conducted whereas compared to the United States’ healthcare. Here are the three why Ghana has more difficulties in implementing a proper healthcare system as compared to the US. One

International Business Essay 3312 Words

3312 words - 14 pages : comparing values, behaviours, institutions, and organizations across nations / Geert Hofstede. 2nd ed. London Rugman, A., Collinson, S. & Hodgetts, R. - International business - 4th ed. - Harlow; New York: Financial Times Prentice Hall, 2006. Rugman M. Alan & Collinson, Simon. (2009) Generic STEEP Analysis: International Business. P 387-388. Mcgaw-Hill, Inc. Articles: Blyhte, N. (2007) ‘China's new economic frontier.’ BBC NEWS

International Business Law Essay

918 words - 4 pages to Tee Co., a firm in the United States. Mr. Ess brings suit in a U.S.court demanding that Tee Co. pay him for goods it received from State R.R Bank intervenes and asks the court to dismiss the suit , claiming that a decision by the court in favor of Mr. Ess would violate the act of state doctrine. The U.S. State Department has declined an invitation to say what effect a decision would have on American foreign policy vis-à-vis State R. Should the court dismiss the case? Explain. Note: The above questions are based on or taken from陈安主编《国际经济法学》, International Business and Trade Law by William E. Kosar and International Business Law by Ray August.