GMS522 - POP QUIZ 3 WITH COMPLETE
SOLUTIONS
According to Dunning's OLI Framework a firm's foreign investment decisions are driven
by - Answer -Ownership, Location and Internalization factors
The ___________ theory attempts to explain international trade by examining the
pattern of
consumer demand for products - Answer -Linder
According to the International Product Cycle Theory comparative advantage shifts to
developing countries such as Mexico, India and China in the _________ stage of the
cycle - Answer -third
Which is NOT a form of government export promotion? - Answer -Establishing voluntary
export restrictions on local firms
The Mexican ambassador to Canada knew exactly why he was being asked to attend a
meeting in Ottawa. Mexican vegetable farmers were rumored to be subsidized by their
government. Canadian farmers in British Columbia and Ontario (two Canadian
provinces) had
complained to the Canadian government calling for the imposition of
________________ on
Mexican imports. The Mexican ambassador knew that if he was not careful in
discussions with
trade officials in Ottawa the matter could soon be before the Wor - Answer -
Countervailing duties
Voluntary export restraints have been used mainly in areas such as textiles,
automobiles, and
steel and are intended to - Answer -Help companies in the importing nation survive
Unlike the International Product Cycle Theory, Porter's Diamond of National Advantage
suggests that countries can maintain their competitive advantage in specific industries
over long
periods of time irrespective of the impact of labor costs. True/False - Answer -true
SOLUTIONS
According to Dunning's OLI Framework a firm's foreign investment decisions are driven
by - Answer -Ownership, Location and Internalization factors
The ___________ theory attempts to explain international trade by examining the
pattern of
consumer demand for products - Answer -Linder
According to the International Product Cycle Theory comparative advantage shifts to
developing countries such as Mexico, India and China in the _________ stage of the
cycle - Answer -third
Which is NOT a form of government export promotion? - Answer -Establishing voluntary
export restrictions on local firms
The Mexican ambassador to Canada knew exactly why he was being asked to attend a
meeting in Ottawa. Mexican vegetable farmers were rumored to be subsidized by their
government. Canadian farmers in British Columbia and Ontario (two Canadian
provinces) had
complained to the Canadian government calling for the imposition of
________________ on
Mexican imports. The Mexican ambassador knew that if he was not careful in
discussions with
trade officials in Ottawa the matter could soon be before the Wor - Answer -
Countervailing duties
Voluntary export restraints have been used mainly in areas such as textiles,
automobiles, and
steel and are intended to - Answer -Help companies in the importing nation survive
Unlike the International Product Cycle Theory, Porter's Diamond of National Advantage
suggests that countries can maintain their competitive advantage in specific industries
over long
periods of time irrespective of the impact of labor costs. True/False - Answer -true
