BUSI 303 EXAM 1 COMPREHENSIVE TEST 2026
QUESTIONS WITH ANSWERS VERIFIED A+
◉ Which of the following factors correlate with the extent of
"connectedness" in flows between countries with respect to trade,
investment, people and information. Answer: Flow intensity (
increased flow= increased GDP growth)
◉ Is most world trade "global" (between regions) or "regional"
(within regions). Answer: Regional
◉ How did the US "chicken tax" on light trucks affect product
offerings for consumers?. Answer: -No light trucks are imported into
the U.S.
-Light truck offerings are very limited due to the high tax on
imported trucks. This provides an inherent advantage for the big
three American companies
◉ The key concept that underlies David Ricardo's theory of
comparative advantage in explaining the benefits of specialization
and trade is:. Answer: "A nation having absolute disadvantages in the
production of 2 goods compared to another nation has a
comparative advantage in producing the good in which its absolute
disadvantage is less"
,◉ What explains the strong growth in world trade since WWII?.
Answer: -US was not hurt in the war
-US helped rebuild Europe led to opening a lot of distribution
channels
-moved away from isolationist policies
-trade barriers removed in political agreements
(Technology and Trade Agreements with the help of the WTO.
Politics such as the break up of the Soviet Union and Corporate
Fragmentation or outsourcing)
◉ What two things did Whirlpool need to demonstrate to convince
the US Department of Commerce (DOC) that Samsung was
"dumping" clothes washers on the US market and that DOC should
impose "anti-dumping" duties on Samsung imports into the US.
Answer: • Cost of production (often subsidies. low interest loans. tax
benefits. grants)
• Price in home market
• Price in third markets
◉ What is a "trade facilitation" measure that can help increase world
trade?. Answer: • -Also called "Administrative impediments"
• -Customs procedures (paperwork)
• -Outdated technology
• -Restricted ports of entry
, • -logistics, warehouses
• -licensing requirements
◉ Why has Tesla delayed making an investment to produce cars in
China?. Answer: • Current regulations require manufacturers
building electric cars in China to source all vehicle components
locally
• Tesla won't be able to use batteries made in the U.S.
• Tesla has no choice but to manufacture vehicles in China despite
regulatory uncertainties
◉ Most FDI inflows to the US are for the purpose of:. Answer:
offshoring FDI seeks cut in production costs to cater to global
markets by fragmenting their production
◉ When InBev acquired Anheuser Busch, a major reason was:.
Answer: Market seeking- same industry & products
- gave market access (horizontal) to US market for InBev beers and
access to global markets for AB beers via each party's distribution
network (downstream)
◉ What motive do US candy makers have for considering moving
production overseas?. Answer: -The price of sugar is higher in the US
than elsewhere, leading US candy makers to consider moving their
operations elsewhere
QUESTIONS WITH ANSWERS VERIFIED A+
◉ Which of the following factors correlate with the extent of
"connectedness" in flows between countries with respect to trade,
investment, people and information. Answer: Flow intensity (
increased flow= increased GDP growth)
◉ Is most world trade "global" (between regions) or "regional"
(within regions). Answer: Regional
◉ How did the US "chicken tax" on light trucks affect product
offerings for consumers?. Answer: -No light trucks are imported into
the U.S.
-Light truck offerings are very limited due to the high tax on
imported trucks. This provides an inherent advantage for the big
three American companies
◉ The key concept that underlies David Ricardo's theory of
comparative advantage in explaining the benefits of specialization
and trade is:. Answer: "A nation having absolute disadvantages in the
production of 2 goods compared to another nation has a
comparative advantage in producing the good in which its absolute
disadvantage is less"
,◉ What explains the strong growth in world trade since WWII?.
Answer: -US was not hurt in the war
-US helped rebuild Europe led to opening a lot of distribution
channels
-moved away from isolationist policies
-trade barriers removed in political agreements
(Technology and Trade Agreements with the help of the WTO.
Politics such as the break up of the Soviet Union and Corporate
Fragmentation or outsourcing)
◉ What two things did Whirlpool need to demonstrate to convince
the US Department of Commerce (DOC) that Samsung was
"dumping" clothes washers on the US market and that DOC should
impose "anti-dumping" duties on Samsung imports into the US.
Answer: • Cost of production (often subsidies. low interest loans. tax
benefits. grants)
• Price in home market
• Price in third markets
◉ What is a "trade facilitation" measure that can help increase world
trade?. Answer: • -Also called "Administrative impediments"
• -Customs procedures (paperwork)
• -Outdated technology
• -Restricted ports of entry
, • -logistics, warehouses
• -licensing requirements
◉ Why has Tesla delayed making an investment to produce cars in
China?. Answer: • Current regulations require manufacturers
building electric cars in China to source all vehicle components
locally
• Tesla won't be able to use batteries made in the U.S.
• Tesla has no choice but to manufacture vehicles in China despite
regulatory uncertainties
◉ Most FDI inflows to the US are for the purpose of:. Answer:
offshoring FDI seeks cut in production costs to cater to global
markets by fragmenting their production
◉ When InBev acquired Anheuser Busch, a major reason was:.
Answer: Market seeking- same industry & products
- gave market access (horizontal) to US market for InBev beers and
access to global markets for AB beers via each party's distribution
network (downstream)
◉ What motive do US candy makers have for considering moving
production overseas?. Answer: -The price of sugar is higher in the US
than elsewhere, leading US candy makers to consider moving their
operations elsewhere
