International Business and Trade Exam

All of the following are considered classical theories of international trade EXCEPT:

• Product Cycle Theory

• Absolute Advantage

• Comparative Advantage

• Mercantilism

Which of the following is NOT a benefit of Foreign Direct Investment (FDI) for a host country?

• Transfer of technology

• Job creation

• Repatriation of profits

• Market competition

The CREATE Act focuses primarily on:

• Tax reduction for corporations

• Environmental compliance

• Limiting imports

• Banning foreign trade

The Department of Trade and Industry's Foreign Trade Service Corps primarily supports:

• Local taxation

• Philippine business expansion abroad

• Military procurement

• Civil engineering projects

Which of the following does NOT characterize globalization in the Philippines?

• Liberalized trade policies

• Growth of BPO industries

• Full ban on foreign investment

• Increase in labor migration

According to the comparative advantage theory, trade is beneficial when countries:

• Export high-priced goods

• Import more than they export

• Specialize in goods they can produce at lower opportunity cost

• Minimize labor productivity

Which policy instrument provides fiscal incentives for strategic industries?

• CREATE Act

• Tariff Modernization Act

• Customs Act

• Local Government Code

DTI's efforts in trade promotion do NOT include:

• Business matching

• Market intelligence

• Product innovation labs

• Trade missions

Which of the following is the main objective of the New Investment Priorities Plan?

• Promote tax hikes

• Restrict foreign investors

• Identify priority sectors for incentives

• Eliminate trade liberalization

Determine if statements are true and if Statement B explains Statement A. Statement A. Globalization has led to the growth of service industries in the Philippines. Statement B. The Philippines has become a hub for business process outsourcing due to skilled labor and English proficiency.

• Both statements are true and B explains A

• Both statements are true but B does not explain A

• A is true; B is false

• Both statements are false