GEB 3375 - Module 2: International Trade and Investment - SB _______ competition is the market situation in which there is a sufficiently large number of well -
informed buyers and sellers of a homogeneous product such that no individual participant has enough power to determine the price of the product. - Perfect A nation can attempt to regain competitiveness in world markets through currency _______, which lowers the value of a nation's currency relative to other currencies and, as a result, lowers the prices of its exports. - Devaluation A trade _____ is the amount by which the value of imports into a nation exceeds the value of its exports. - deficit A trade ________ is the amount by which the value of a nation's exports exceeds the value of its imports. - surplus According overlapping demand theory, goods produced for domestic consumption will eventually be exported to countries with _______. - similar income per capita similar demand According to the economic theory of mercantilism, the only source of wealth was _____. - precious metals After analyzing which nations account for the most exports and imports, it is evident that international trade _____. - is unevenly distributed across the world After its first two years in business, Lennart's company realized that by purchasing component parts from Indonesia, it could save 12% in the final cost of goods. Lennart's company was able to improve its efficiency based on the knowledge it gained during its first two years in business. This example demonstrates the idea of the _______. - experience curve Although all regions of the world have experienced an absolute increase in the dollar volume of service exports, the proportion of world exports of commercial services from which of the following regions has declined since 1980? - European Union Africa Middle East Although the mercantilist era ended, we still define a(n) ______ trade balance to mean that a nation exports more goods and services than it imports. - favorable Although trade has increased globally, the proportion of world trade coming from which of the following regions has actually decreased since 1980? - Middle East Africa North America Currency ______ lowers the value of a nation's currency relative to other currencies and therefore effectively lowers the prices of its exports. - devaluation Economist David Ricardo's idea of a comparative advantage is based on the idea that when two countries are involved in trade, _________. - both countries can benefit from trade For the past 20 years, international trade in _______, (merchandise or services?) has seen the fastest growth. - services Franz was happy to report to the management team that its larger production facility made it possible to increase the number of bicycles produced and also decrease the cost of each bicycle. Which of the following occurred in this scenario? - economies of scale If Indonesia can produce more clothing products than the United States and do so for a lower cost, then Indonesia is said to have a(n) __________ advantage. - absolute In balance -of-payments accounting, an export that brings money to the country is considered _______ (positive/negative), while imports that cause monetary outflow are labeled _______ (positive/negative). - positive negative Of the countries listed below, which one supplies the United States with huge amounts of electronic products and components? - China Perfect competition results in _______. - efficient allocation of products efficient production Place the stages of the international product life cycle (IPLC) in the correct order from first to last - The EU and ASEAN have reinforced the increasing _______ of trade? - regionalization The greatest usefulness of the international product life cycle theory in explaining trade comes when companies introduce their new products into _____ (international/home) markets first - home The idea that a denim manufacturer in the United States can export its products to China while at the same time a Chinese manufacturer in the denim market can export to the United States because each of the product lines has unique qualities demonstrates t he idea of product _______. - differentiation The initial stage of the international product life cycle is _______. - innovation The international product life cycle theory is demonstrated by the fact that personal computers were initially introduced in the United States but over time their production has moved overseas and they are now imported into the United States. - True
informed buyers and sellers of a homogeneous product such that no individual participant has enough power to determine the price of the product. - Perfect A nation can attempt to regain competitiveness in world markets through currency _______, which lowers the value of a nation's currency relative to other currencies and, as a result, lowers the prices of its exports. - Devaluation A trade _____ is the amount by which the value of imports into a nation exceeds the value of its exports. - deficit A trade ________ is the amount by which the value of a nation's exports exceeds the value of its imports. - surplus According overlapping demand theory, goods produced for domestic consumption will eventually be exported to countries with _______. - similar income per capita similar demand According to the economic theory of mercantilism, the only source of wealth was _____. - precious metals After analyzing which nations account for the most exports and imports, it is evident that international trade _____. - is unevenly distributed across the world After its first two years in business, Lennart's company realized that by purchasing component parts from Indonesia, it could save 12% in the final cost of goods. Lennart's company was able to improve its efficiency based on the knowledge it gained during its first two years in business. This example demonstrates the idea of the _______. - experience curve Although all regions of the world have experienced an absolute increase in the dollar volume of service exports, the proportion of world exports of commercial services from which of the following regions has declined since 1980? - European Union Africa Middle East Although the mercantilist era ended, we still define a(n) ______ trade balance to mean that a nation exports more goods and services than it imports. - favorable Although trade has increased globally, the proportion of world trade coming from which of the following regions has actually decreased since 1980? - Middle East Africa North America Currency ______ lowers the value of a nation's currency relative to other currencies and therefore effectively lowers the prices of its exports. - devaluation Economist David Ricardo's idea of a comparative advantage is based on the idea that when two countries are involved in trade, _________. - both countries can benefit from trade For the past 20 years, international trade in _______, (merchandise or services?) has seen the fastest growth. - services Franz was happy to report to the management team that its larger production facility made it possible to increase the number of bicycles produced and also decrease the cost of each bicycle. Which of the following occurred in this scenario? - economies of scale If Indonesia can produce more clothing products than the United States and do so for a lower cost, then Indonesia is said to have a(n) __________ advantage. - absolute In balance -of-payments accounting, an export that brings money to the country is considered _______ (positive/negative), while imports that cause monetary outflow are labeled _______ (positive/negative). - positive negative Of the countries listed below, which one supplies the United States with huge amounts of electronic products and components? - China Perfect competition results in _______. - efficient allocation of products efficient production Place the stages of the international product life cycle (IPLC) in the correct order from first to last - The EU and ASEAN have reinforced the increasing _______ of trade? - regionalization The greatest usefulness of the international product life cycle theory in explaining trade comes when companies introduce their new products into _____ (international/home) markets first - home The idea that a denim manufacturer in the United States can export its products to China while at the same time a Chinese manufacturer in the denim market can export to the United States because each of the product lines has unique qualities demonstrates t he idea of product _______. - differentiation The initial stage of the international product life cycle is _______. - innovation The international product life cycle theory is demonstrated by the fact that personal computers were initially introduced in the United States but over time their production has moved overseas and they are now imported into the United States. - True
