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IBM EXAM 2 QUESTIONS & ANSWERS 100% CORRECT!

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Why Nations Trade - ANSWERSEconomic Gain International Trade terminology - ANSWERSTrade Deficit (Imports) Trade Surplus (Exports) Balance of Trade (Import & Export lead to Country-level Trade) 6 International Trade Theories - ANSWERSMercantilism Absolute Adv. Comparative Adv. Product Life Cycle (Changes in pattern) Strategic Trade (Gov. Intervention) National Competitive Adv of Industries (Firm,Domestic,Related,Country) Tariff Barriers to Trade - ANSWERStrade barrier that relies on tariffs to discourage imports Import Tariff (Tax on imports) Deadweight Cost (Net Losses) Non-Tariff Barriers to Trade - ANSWERStrade barriers that rely on nontariff means to discourage imports Vertical FDI - ANSWERSa type of FDI in which a firm moves upstream or downstream at different value chain stages in a host country Value Chain - ANSWERS Upstream FDI - ANSWERSa type of vertical FDI in which a firm engages in an upstream stage of the value chain in a host countr

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IBM EXAM 2 QUESTIONS & ANSWERS
100% CORRECT!
Why Nations Trade - ANSWERSEconomic Gain

International Trade terminology - ANSWERSTrade Deficit (Imports)
Trade Surplus (Exports)
Balance of Trade (Import & Export lead to Country-level Trade)

6 International Trade Theories - ANSWERSMercantilism
Absolute Adv.
Comparative Adv.
Product Life Cycle (Changes in pattern)
Strategic Trade (Gov. Intervention)
National Competitive Adv of Industries (Firm,Domestic,Related,Country)

Tariff Barriers to Trade - ANSWERStrade barrier that relies on tariffs to discourage
imports

Import Tariff (Tax on imports)
Deadweight Cost (Net Losses)

Non-Tariff Barriers to Trade - ANSWERStrade barriers that rely on nontariff means to
discourage imports

Vertical FDI - ANSWERSa type of FDI in which a firm moves upstream or downstream
at different value chain stages in a host country

Value Chain - ANSWERS

Upstream FDI - ANSWERSa type of vertical FDI in which a firm engages in an
upstream stage of the value chain in a host countr

Downstream FDI - ANSWERSa type of vertical FDI in which a firm engages in an
upstream stage of the value chain in a host countr

MNE - ANSWERSAn multinational enterprise (MNE) is a firm that engages in FDI when
doing business abroad•
Subsidy
Import Quota
Voluntary Export Restraint
Local Content Requirement
Administrative Policy

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