GB 2nd Quiz (from Ch. 5 ~ Ch. 8)

Which of the following best describes the aggregation of importing and exporting that leads to the country-level trade surplus or deficit?

• a. Trade deficit.

• b. Trade surplus.

• c. Balance of trade.

• d. All of the above.

• e. None of the above.

Selling the rights to intellectual property for a royalty

fee is involved in

• a. Licensing/franchising.

• b. Turnkey projects.

• c. R&D contracts.

• d. Comarketing.

• e. None of the above.

3. Which of the following best describes a type of horizontal FDI in which a firm engages in an upstream stage of the value chain in a host country?

• a. Upstream vertical FDI.

• b. Downstream vertical FDI.

• C. Upstream horizontal FDI.

• d. Downstream horizontal FDI.

• e. None of the above.

Which of the following best describe the modern trade theories?

• a. Mercantilism.

• a. Absolute advantage.

• c. Comparative advantage.

• d. Product life cycle.

• e. None of the above.

Which of the following best describe theory of national competitive advantage of industries?

• a. Classical trade theory.

• b. Product life cycle theory.

• c. Diamond theory.

• d. Strategic trade theory.

• e. None of the above.

One of the Benefits of FDI to home countries is?

• a.MNEs may drive some domestic firms out of business.

• b. Capital outflow.

• c. Loss of economic sovereignty.

• d.Repatriated earnings from profits from FDI.

• e. a & b are correct

Which of the following best describe the effect of investors moving in the same direction at the same time, like a herd?

• a. Currency hedging effect.

• b. Peg effect.

• c. Bandwagon effect.

• d. Capital flight effect.

• e. None of the above.

The benefits of Global Economic Integration tend to provide all of the following except:

• a. Enhances the individual political weight of a region.

• b. Promotes peace by fostering closer economic ties and building confidence.

• c. Disputes are handled constructively.

• d. Free trade and investment raise incomes and stimulate economic growth.

• e. Build confidence in a multilateral trading system.

What sets MNEs apart from non-MNEs?

• a. FPI

• b. FDI

• c. FBI

• d. OLI

• e. None of the above.

Firms may choose not to enter certain countries if:

• a.They possess common firm-specific assets.

• b.The transaction costs are be too high.

• c.There are no dissemination risks.

• d.There is an authorized diffusion of firm-specific assets.

• e.All of the above.