CBA300 Chapter 2 Exam
Latest Update
volume of international trade - ANSWER 2013:
Physical goods-- automobiles, food, and clothing = $18.8 trillion
Services-- $4.6 trillion
*Trade in services has been growing faster than trade in merchandise for last 20 yrs.
mercantilism - ANSWER an economic philosophy based on the belief that (1) a nation's
wealth depends on accumulated treasure, usually precious metals like gold & silver; &
(2) to increase wealth, govt. policies should promote exports and discourage imports.
Which country has become the world's largest exporter? - ANSWER China
After analyzing which nations account for the most exports and imports, it is evident that
international trade_________. - ANSWER is unevenly distributed across the world
Major trading partners: Their Relevance for Managers - ANSWER 1. Business climate in
importing nations is already relatively favorable.
2. Export and import regulations aren't big
3. There should be no strong cultural objections at home to buying that nation's goods.
4. Satisfactory transportation facilities have already been established.
5. Import channel members (merchants, banks, and customs brokers) are experienced
in handling import shipments from the exporter's area.
6. Currency from foreign country is available to pay for exports.
7. The govt. of a trading partner may be applying pressure on its importers to buy from
countries that like the US, are good customers for that nation's exports.
The top 10 trading partners of the US accounted for ______ of total US exports in 2013. -
ANSWER 62%
Why are Asian countries both import and export partners of the US? - ANSWER 1. Their
rising standards of living enable their people to afford more imported products and the
countries' export earnings provide the monies necessary to pay for them.
2. They are purchasing large amounts of capital goods to further their industrial
, expansion
3. They are importing raw materials and components that will be assembled into
subassemblies or finished goods that will subsequently be exported, often to the US
4. Their governments, pressured by the U.S. government to lower their trade surplus--
the amount by which the value of a nations exports exceeds the value of its imports--
have sent buying missions to the US to look for products to import.
True statements about mercantilism: - ANSWER 1. It viewed precious metals like gold
and silver as the only source of wealth.
2. It tended to create trade surplus.
3. Its a complex political/economic theory.
_________________ competition is the market situation in which there's a sufficiently large
# of well-informed buyers and sellers of a homogeneous product such that no individual
participant has enough power to determine price of the product. - ANSWER 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 it's exports - ANSWER devaluation
Land, labor, capital, and related production factors a nation possesses are called
______________ ______________________. - ANSWER resource endowments
The theory of______________ ________________ argues for the existence of similar
preferences and demand for products and services among nations with similar levels of
per capita income. - ANSWER over lapping demand
Steps to the international product life cycle - ANSWER Step 1: U.S. innovates and
exports
Step 2: foreign production begins
Step 3: Foreign competition appears in export markets
Step 4: Import competition appears in the United States
Economies of scale - ANSWER predictable decline in the average cost of producing
each unit of output as a production faciltiy gets larger and output increases.
Experience curve - ANSWER the rising scale on which efficiency improves as a result of
cumulative experience and learning.
Which explanation suggests that countries will export products requiring large amounts
of the abundant production factors and import products requiring large amounts of the
scarce production factors? - ANSWER Differences in resource endowments
Latest Update
volume of international trade - ANSWER 2013:
Physical goods-- automobiles, food, and clothing = $18.8 trillion
Services-- $4.6 trillion
*Trade in services has been growing faster than trade in merchandise for last 20 yrs.
mercantilism - ANSWER an economic philosophy based on the belief that (1) a nation's
wealth depends on accumulated treasure, usually precious metals like gold & silver; &
(2) to increase wealth, govt. policies should promote exports and discourage imports.
Which country has become the world's largest exporter? - ANSWER China
After analyzing which nations account for the most exports and imports, it is evident that
international trade_________. - ANSWER is unevenly distributed across the world
Major trading partners: Their Relevance for Managers - ANSWER 1. Business climate in
importing nations is already relatively favorable.
2. Export and import regulations aren't big
3. There should be no strong cultural objections at home to buying that nation's goods.
4. Satisfactory transportation facilities have already been established.
5. Import channel members (merchants, banks, and customs brokers) are experienced
in handling import shipments from the exporter's area.
6. Currency from foreign country is available to pay for exports.
7. The govt. of a trading partner may be applying pressure on its importers to buy from
countries that like the US, are good customers for that nation's exports.
The top 10 trading partners of the US accounted for ______ of total US exports in 2013. -
ANSWER 62%
Why are Asian countries both import and export partners of the US? - ANSWER 1. Their
rising standards of living enable their people to afford more imported products and the
countries' export earnings provide the monies necessary to pay for them.
2. They are purchasing large amounts of capital goods to further their industrial
, expansion
3. They are importing raw materials and components that will be assembled into
subassemblies or finished goods that will subsequently be exported, often to the US
4. Their governments, pressured by the U.S. government to lower their trade surplus--
the amount by which the value of a nations exports exceeds the value of its imports--
have sent buying missions to the US to look for products to import.
True statements about mercantilism: - ANSWER 1. It viewed precious metals like gold
and silver as the only source of wealth.
2. It tended to create trade surplus.
3. Its a complex political/economic theory.
_________________ competition is the market situation in which there's a sufficiently large
# of well-informed buyers and sellers of a homogeneous product such that no individual
participant has enough power to determine price of the product. - ANSWER 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 it's exports - ANSWER devaluation
Land, labor, capital, and related production factors a nation possesses are called
______________ ______________________. - ANSWER resource endowments
The theory of______________ ________________ argues for the existence of similar
preferences and demand for products and services among nations with similar levels of
per capita income. - ANSWER over lapping demand
Steps to the international product life cycle - ANSWER Step 1: U.S. innovates and
exports
Step 2: foreign production begins
Step 3: Foreign competition appears in export markets
Step 4: Import competition appears in the United States
Economies of scale - ANSWER predictable decline in the average cost of producing
each unit of output as a production faciltiy gets larger and output increases.
Experience curve - ANSWER the rising scale on which efficiency improves as a result of
cumulative experience and learning.
Which explanation suggests that countries will export products requiring large amounts
of the abundant production factors and import products requiring large amounts of the
scarce production factors? - ANSWER Differences in resource endowments
