An International trade theory, grounded In the work of Adam Smith and David Richard, that focuses on the Importance of comparative advantage obtained through differences in natural or acquired economic advantages is referred to as: a. Classical trade theory b. Factor proportion theory c. Product life cycle theory d. Competitive advantage theory 2. Paul German's "realist" perspective embraces which of the following conclusions: a. Countries compete with each other much like companies compete with each other ND must therefore engage in similar strategic behaviors b.
Government intervention in the market Is often essential due to imperfections that allow for the formation of monopolies and oligopolies In lucrative Industry segments c. Economic growth In one country must come at the expense of economic growth in another, therefore countries must protect domestic Industry in many instances d. Market imperfections due in fact exist, but the prospects for improving the situation through strategic trade policy is overstated by those in favor of government intervention 3.
Cluster theory suggests that companies obtain resources as a result of geographic proximity to other related and supportive Industries primarily as a result of: a. Information spillovers b. Lower shipping costs c. Region specific subsidies d. Access to a common labor pools 4. A theory of Internationalization, observed In the wine Industry In the assigned readings, that focuses on the development of relationships between producers, suppliers, competitors, and government to obtain information and resources necessary to complete globally is referred to as: a. Pascal model b. Network model .
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Innovation model d. Leverage model 5. Michael Porters Diamond Model focuses on all of the following, EXCEPT: a. The Importance of International competition to drive technological Innovation b. C. Sophisticated domestic demand that encourages new product and service development d. The presence of related and supportive industries in the domestic market 6. Mercantilism refers to policies and practices designed to: a. Encourage international trade through the creation of innovative products and services b. Remove regulatory and economic barriers to international competition c.
Create a trade surplus by subsidizing domestic firms and limiting foreign competition d. Discourage all international trade to promote national independence and self- sufficiency 7. An international trade theory, grounded in the work of Wassail Limonite, that focuses on trade cycles emerging from production initially by a parent company, then by a foreign subsidiary, and ultimately by foreign competitors is referred to as: a. Classical trade theory d. Competitive advantage theory 8. Advocates of Porter's Diamond Model believe governments should support mommies industries by engaging in which of the following activities: a.
Subordination of industries of national importance to improve their competitive position b. Imposition of barriers to prevent foreign competitors from entering domestic markets c. Provision of supportive public infrastructure and education needed to support emerging industries d. The government should play no role in supporting or developing domestic industries 9. Cluster theory focuses primarily on the creation of competitive advantage through: a. Ongoing investment in research and development to encourage innovation b.
Intense price competition designed to bring down the cost of products and services c. Transportation costs associated with bringing goods and services to market d. Interactions between geographic concentrations of interconnected companies 10. The case study of wine clusters indicates that firms in this industry located in both Brazil and France have effectively leveraged which of the following cluster resources to facilitate the internationalization process: a. Affordable input costs b. Regional reputation and culture c. Manufacturing expertise d. Labor spillovers
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