IBT PRE-MIDTERM EXAM

1. Refer to inputs used as factors of production—such as labor, land, natural resources, capital, and infrastructure.

• Factor conditions

• Demand conditions     

• Related and supporting industries

• Local firm characteristics

2. The three distinct stages of the product life cycle are the following, except:

• New product

• Maturing product       

• Standardized product       

• Extinct product       

3. 3. This theory describes the effects of a society’s culture on the values of its members, and how these values relate to behavior, using a structure derived from factor analysis.

• Value Orientation Theory

• Hofstede’s Cultural Dimensions Theory

• Trompenaar Social Values Orientation

• Product Life Cycle Theory

4. This tip shall direct the firm to call its customers or clients immediately after a transaction and thank them for their business and ask them if they are pleased with what they have received.

• Establish a Plan to Promote Customer Loyalty.

• Decide How to Publicize the Firm’s Business.

• Develop a Motivating Offer.

• Identify the Target Market.

5. 5. The common French synonym for mercantilism.

• gournayism

• colbertisme      

• laissez faire

• quesnayism

6. A theory offered by Adam Smith which focused on the ability of a country to produce a good more efficiently than another nation.

• Proportion Model  

• Product Life Cycle Theory   

• Comparative Advantage    

• Absolute Advantage

7. It occurs when a country cannot produce a product more efficiently than the other country; however, it can produce that product better and more efficiently than it does other goods.

• Absolute advantage  

• Comparative advantage  

• General advantage  

• Specific advantage  

8. They played an active role in the field of international business.

• Countries

• Cities

• Regions

• Provinces

9. Refers to the physical machines and equipment that is used in production.

• Land

• Labor

• Capital

• Implements

10. This trade theory stated that the government should establish economic policies that promoted exports and discouraged imports, so that the trade surplus created should be paid for in gold and silver.

• Mercantilism

• Product Life Cycle Theory

• Comparative Advantage    

• Absolute Advantage