Bellner BUSMHR 2000 Exam 2 (Final)
Questions and Correct Answers the Latest
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QUESTIONS AND ANSWERS
CH 5. ANSWER - Theories of International Trade and Investment
National industrial policy. ANSWER - A proactive economic development plan a
government initiates to build or strengthen a particular industry.
Mercantilism. ANSWER - The belief that national prosperity is the result of a
positive balance of trade, achieved by maximizing exports and minimizing imports.
Internalization theory. ANSWER - An explanation of the process by which firms
acquire and retain one or more value-chain activities inside the firm, minimizing the
disadvantages of dealing with external partners and allowing for greater control over
foreign operations.
Industrial cluster. ANSWER - A concentration of businesses, suppliers, and
supporting firms in the same industry at a particular location, characterized by a
critical mass of human talent, capital, or other factor endowments.
Free Trade. ANSWER - Relative absence of restrictions to the flow of goods and
services between nations.
Competitive advantage. ANSWER - Assets or capabilities of a firm that are difficult
for competitors to imitate. They are typically derived from specific knowledge,
competencies, skills, or superior strategies.
ex: knowledge, capabilities, skills, strategies, networks, assets
, Comparative advantage principle. ANSWER - It may be beneficial for two countries
to trade with each other as long as one is relatively more efficient at producing a
product needed by the other.
Comparative advantage. ANSWER - Superior features of a country that provide
unique benefits in global competition, typically derived from either natural
endowments or deliberate national policies.
ex: resources, land, location, climate, labor (low cost & skilled)
Absolute advantage principle. ANSWER - The idea that a country benefits by
producing only those products it can produce using fewer resources.
National Classical Theories. ANSWER - -Mercantilism
-Absolute Advantage Principle
-Comparative Advantage Principle
-Factor Proportions Theory
-International Product Life Cycle Theory
-New Trade Theory
National Contemporary Theories. ANSWER - -Competitive Advantage of Nations
-Michael Porter's Diamond Model
-National Industrial Policy
Firm Internationalization. ANSWER - -Internationalization Process of the Firm
-Born Globals and International Entrepreneurship
FDI based explanations. ANSWER - -Monopolistic advantage theory
-Internationalization theory
-Dunnings eclectic paradigm
Non-FDI based explanations. ANSWER - -International collaborative ventures
Questions and Correct Answers the Latest
Update.
Already Graded A+
QUESTIONS AND ANSWERS
CH 5. ANSWER - Theories of International Trade and Investment
National industrial policy. ANSWER - A proactive economic development plan a
government initiates to build or strengthen a particular industry.
Mercantilism. ANSWER - The belief that national prosperity is the result of a
positive balance of trade, achieved by maximizing exports and minimizing imports.
Internalization theory. ANSWER - An explanation of the process by which firms
acquire and retain one or more value-chain activities inside the firm, minimizing the
disadvantages of dealing with external partners and allowing for greater control over
foreign operations.
Industrial cluster. ANSWER - A concentration of businesses, suppliers, and
supporting firms in the same industry at a particular location, characterized by a
critical mass of human talent, capital, or other factor endowments.
Free Trade. ANSWER - Relative absence of restrictions to the flow of goods and
services between nations.
Competitive advantage. ANSWER - Assets or capabilities of a firm that are difficult
for competitors to imitate. They are typically derived from specific knowledge,
competencies, skills, or superior strategies.
ex: knowledge, capabilities, skills, strategies, networks, assets
, Comparative advantage principle. ANSWER - It may be beneficial for two countries
to trade with each other as long as one is relatively more efficient at producing a
product needed by the other.
Comparative advantage. ANSWER - Superior features of a country that provide
unique benefits in global competition, typically derived from either natural
endowments or deliberate national policies.
ex: resources, land, location, climate, labor (low cost & skilled)
Absolute advantage principle. ANSWER - The idea that a country benefits by
producing only those products it can produce using fewer resources.
National Classical Theories. ANSWER - -Mercantilism
-Absolute Advantage Principle
-Comparative Advantage Principle
-Factor Proportions Theory
-International Product Life Cycle Theory
-New Trade Theory
National Contemporary Theories. ANSWER - -Competitive Advantage of Nations
-Michael Porter's Diamond Model
-National Industrial Policy
Firm Internationalization. ANSWER - -Internationalization Process of the Firm
-Born Globals and International Entrepreneurship
FDI based explanations. ANSWER - -Monopolistic advantage theory
-Internationalization theory
-Dunnings eclectic paradigm
Non-FDI based explanations. ANSWER - -International collaborative ventures
