The market power effect of an international joint venture can lead to welfare losses for the domestic economy unless offset by cost reductions. Which type of cost reduction would not lead to offsetting welfare gains for the overall economy ?

Related Mcqs:

1. International joint ventures can lead to welfare losses when the newly established firm ?

   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...

2. Suppose that Russia steel firms engage in dumping in the German market in terms of overall economic welfare, German welfare would _______ as the result of the dumping?

   A. increase B. decrease C. not change D. None of These...

3. When Coca-Cota and Nestle formed joint venture to market a ready to drink coffee and tea worldwide the type of marketing system that was formed would best be described as being a(n)?

   A. vertical marketing system B. parallel marketing system C. diversified marketing system D. horizontal marketing system...

4. All of the following are potential advantages of an international joint venture except ?

   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...

5. International trade tends to cause welfare losses to at least some groups in a country ?

   A. The less mobile the country’s resources B. The more mobile the country’s resources C. The lower the country’s initial living standard The higher the country’s initial living standard...

6. Policies to reduce unemployment by reducing union power, tax cuts, reductions in unemployment benefit and investment subsidies are examples of ?

   A. Keynesian policies B. Supply-side policies C. Monetarist Policies D. Classical policies...

7. A company’s compensation plan should reflect its overall marketing strategy For example if the overall strategy is to grow rapidly and gain market share the compensation plan should reward ?

   A. loyalty and perseverance B. spot selling and old product rejuvenation C. high sales performance and encourage capturing new accounts D. high pressure situations and competitive reaction...

8. To help developing nations strengthen their international competitiveness many industrial nations have granted non-reciprocal tariff reductions to developing nations under the ?

   A. international commodity agreements program B. multilateral contract program C. generalized system of preferences program D. export-led growth program...

9. If some gain and some lose as the result of a proposed change and it can be demonstrated that the value of the gains would exceed the value of the losses then the change is said to be ?

   A. technically efficient. B. inefficient. C. potentially efficient D. unequivocally Pareto optimal...

10. The effect of a tax to offset a negative externality will be to ____ price and ______ quantity?

    A. reduce , reduce B. increase, increase C. increase, reduce D. reduce, increase...