International Factor Movements And Multinational Corporations

A. impoverished countries to impoverished countries
B. impoverished countries to wealthy countries
C. wealthy countries to wealthy countries
D. wealthy countries to impoverished countries

A. electrician unions in the high-paying nations
B. electrician unions in the low paying nations
C. electrician employers in the high-paying nations
D. electricians who stay in the low paying nations

A. decrease wage rates in the low-paying nations
B. decrease productivity and real output in the world
C. increase business or capitalist incomes in the high-paying nations
D. increase business or capitalist incomes in the low-paying nations

A. adds to the pre-existing productive capacity
B. enters markets neither parent could have entered individually
C. yields cost reductions unavailable to parent firms
D. gives rise to increased amounts of market power

A. enjoy unfair advantage in taxation
B. export jobs by shifting technology overseas
C. export jobs by shifting investment overseas
D. operating at output levels where scale economies occur

A. cannot benefit from the advantage of comparative advantage
B. may raise political problems in countries where their subsidiaries operate
C. can only invest at home but not overseas
D. can only invest overseas but not at home

A. increase the transfer of technology between nations
B. make it harder to nations to foster activities of comparative advantage
C. always enjoy political harmony in nations where their subsidiaries operate
D. require governmental subsidies in order to conduct worldwide operations

A. sharing research and development cost among corporations
B. forestalling protectionism against imports
C. establishing work rules promoting higher labor productivity
D. operating at diseconomy-of-scale output levels

1. export led growth
2. import substitution
3. dynamic hedging
4. countervailing duties

A. the construction of a new auto assembly plant overseas
B. the acquisition of an existing steel mill overseas
C. the purchase of bonds or stock issued by a textile company overseas
D. the creation of a wholly owned business firm overseas