Trade Theories and Global Economic Pyramid Quiz

Which of the following trade theories divides the nations of the world into three categories?

• National competitive advantage of industries

• Strategic trade

• Cluster approach

• Product life cycle

To attract investment, developing countries may enter a "race to the bottom" by lowering environmental standards and some may become "pollution havens."

• True

• False

Which of the following tiers in the global economic pyramid would comprise developed nations?

• The base

• The top tier

Which of the following indicates that the trade deficit the United States has with China is not a huge problem?

• China’s trade volume is 53% of GDP, whereas the United States’ volume is only 30%.

• The Chinese currency is severely undervalued, giving Chinese exports an unfair advantage

• The United States borrows against its future

• Chinese exporters are eager to drive United States rivals out of business

Free market advocates believe that the first and foremost stakeholder group is _______.

Which of the following drives the urgent need for global sustainability?

• The discovery of new sources of non-renewable natural resources

• Internationalization of firms from the U.S. in a more rapid pace than ever

• Rising levels of population and poverty calling for new ideas and solutions

• Decreased participation of NGOs in monitoring and enforcing social standards

Which of the following was the first international trade theory to account for changes in the patterns of trade over time?

• Comparative advantage theory

• Absolute advantage theory

Which of the following is true of voluntary export restraints?

• It is an extra tax imposed by a country on its exports.

• It is an example of a tariff barrier.

• It is a government payment to domestic firms.

• It is an export quota levied by a country on the quantity of its exports.

Which of the following is an example of secondary stakeholder groups?

• Employees

• Managers

• Suppliers

• Environmental groups

In high-context cultures, communication is usually ________.