[ECO100Y1] - Midterm Exam Guide - Everything you need to know! (26 pages long)
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The primary costs of FDI to host countries are:
Loss of sovereignty and patriotism | ||
Adverse effects on competition and exports | ||
Capital outflow | ||
Loss of sovereignty, adverse effects on competition, and capital outflow |
____ suggests that FDI, unrestricted by government intervention, will enable countries to tap into their absolute or comparative advantage by specializing in the production of certain goods or services.
The radical view | ||
The free market view | ||
Pragmatic nationalism | ||
Expropriation |
What are the benefits of FDI to home countries?
Repatriated earnings from profits from FDI. | ||
Increased exports of components and services to host countries. | ||
Learning via FDI from operations abroad. | ||
All of these answers |
When one firm enters a foreign country through FDI, its rivals are likely to follow by undertaking additional FDI in a host country to:
Create knowledge spillover | ||
Discover a new market for its goods | ||
Overcome and combat market failure through FDI | ||
Acquire location advantages or neutralize the first moverâs location advantages |
Most countries practice:
Pragmatic nationalism | ||
Free market based FDI | ||
Government embracing radical view | ||
French patriotism |
FDI may be viewed as a reflection of firm motivation to extend firm-specific capabilities abroad and their responses to overcome imperfections and failures.
True | ||
False |
Most countries practice a totally "free market" view.
True | ||
False |
8. Outsourcing is the process of turning over an organizational activity to an outside supplier, located in a foreign country, which will perform it on behalf of the local firm.
True | ||
False |
Financial, physical, and technological resources and capabilities are all tangible assets.
True | ||
False |
A firm's resources and capabilities are tangible assets a firm uses to choose and implement its strategies.
True | ||
False |
An example of low power distance would be when subordinates address their bosses on a first-name basis.
True | ||
False |
Benchmarking is an assessment as to whether a firm has resources and capabilities to perform a particular activity in a manner superior to competitors.
True | ||
False |
A country with low-masculinity has a more subtle differentiation between the gender roles.
True | ||
False |
Setting up subsidiaries abroad so the work can be performed in-house but in the foreign location is also called captive sourcing.
True | ||
False |
Managers in low uncertainty avoidance countries rely more on experience and training than managers in high uncertainty avoidance countries who rely more on rules.
True | ||
False |
Informal institutions include laws, regulations, and rules.
True | ||
False |
The United States is often classified as a collective society.
True | ||
False |
A pure market economy characterized by the "invisible hand" of market forces is noted by
John Stuart Mill | ||
Adam Smith | ||
Aristotle | ||
Amatya Zen |
Culture is defined in the text as:
The communication between members of similar location. | ||
The collective programming of the mind, which distinguishes the members of one group or category of people from another. | ||
The main component of formal institutions. | ||
The attitudes and behaviors characteristic of a particular social group or organization. |
When an expat employee returns to her or his current employer but the employer does not provide attractive opportunities, she/he often may be hired by a competitor firm. Why?
Competitor firms are also interested in globalizing their business. | ||
Former expats bring instant expertise and experience. | ||
Competing firms will pay a higher premium for expertise. | ||
All of these answers |
The government taking a "hands-off approach" is known as:
Laissez faire | ||
Command economy | ||
Mixed economy | ||
Liberal approach |
Expatriate managers make ideal candidates for top management positions.
True | ||
False |
____ are defined as rights associated with the ownership of intellectual property.
Patents | ||
Copyrights | ||
Trademarks | ||
Intellectual property rights |
In a collective society:
Family units are highly valued. | ||
Being an entrepreneur is a popular mindset | ||
Being different than your neighbor is important. | ||
Outsiders are easily trusted. |
Which of the following definitions best defines an expatriate manager?
A manager who works outside his or her native country | ||
A manager of great expertise | ||
An ex-manager rehired for advisory purposes | ||
None of these answers |
Question 1
The law of demand states that there is a direct relationship between supply and demand.
True
False
4 points
Question 2
Equilibrium is a state of balance between supply and demand.
True
False
4 points
Question 3
Goods are scarce for both rich and poor.
True
False
4 points
Question 4
"The big corporations in this country, like ExxonMobil and GM, have deep pockets and need to be hiring more people." This is a positive statement about economic policy.
True
False
4 points
Question 5
The law of supply states that there is a direct relationship between price and quantity demanded.
True
False
4 points
Question 6
In the circular flow model, firms own economic resources, and householdsbuy the manufactured products and services.
True
False
4 points
Question 7
Households play a dual role of providing the factors of production whilepurchasing the goods and services of firms.
True
False
4 points
Question 8
Opportunity cost is the lowest valued benefit that must be sacrificed asthe result of choosing an alternative.
True
False
4 points
Question 9
Scarcity denotes that our desire for a good exceeds the amount that isfreely available from nature.
True
False
4 points
Question 10
Economics is a social science concerned with satisfying man's unlimitedwants with limited resources.
True
False
4 points
Question 11
Joint output of individuals or nations will be maximized when goods areexchanged between parties in accordance with the law of"comparative advantage".
True
False
4 points
Question 12
The production possibilities frontier assumes that the level of technologyvaries when applying the model.
True
False
4 points
Question 13
Excess demand in the market will cause the price of a product to decline.
True
False
4 points
Question 14
Demand is measured on the vertical axis and supply on the horizontalaxis.
True
False
4 points
Question 15
A change in quantity demanded is a movement along the same demandcurve.
True
False
4 points
Question 16
As globalization and world trade proliferates, individual markets withincountries' economies become more competitive.
True
False
4 points
Question 17
Which growth theory compares a subsistence real wage rate to the actual real wage rate?
Classical growth theory | ||
Inflation growth theory | ||
Neoclassical growth theory | ||
New growth theory |
4 points
Question 18
Suppose the working age population in Tiny Town is 100 people. If 25 of these people are NOT in the labor force, the ________ equals ________.
unemployment rate; 25/100 Ã 100 | ||
employment rate; 25/75 Ã 100 | ||
labor force; 75 | ||
labor force; 25/100 Ã 100 |
4 points
Question 19
Suppose there is a rise in the real wage rate. As a result, the quantity of labor demanded:
increases. | ||
decreases. | ||
does not change because there is no change in the money wage rate. | ||
increases only if the price level also decreases. |
4 points
Question 20
GDP can be computed as the sum of:
all sales that have taken place in an economy over a period of time. | ||
the total expenditures of consumers and business over a period of time. | ||
the total expenditures of consumption, investment, and government expenditure on goods and services over a period of time. | ||
the total expenditures of consumption, investment, government expenditure on goods and services, and net exports over a period of time. |
4 points
Question 21
The real wage rate equals:
(100 x (money wage rate/price level) | ||
(100 x (price level/money wage rate) | ||
(money wage rate x (price level) | ||
(money wage + (number of hours worked/(price level) |
4 points
Question 22
If the CPI was 121.5 at the end of 2007 and 138.3 at the end of 2008, the inflation rate over these two years was:
10.2 percent. | ||
13.8 percent. | ||
12.2 percent. | ||
16.8 percent. |
4 points
Question 23
A movement along the production function is the result of a change in:
the quantity of labor. | ||
technology. | ||
capital. | ||
interest rates. |
4 points
Question 24
All of the following are part of fiscal policy EXCEPT:
setting tax rates. | ||
setting government spending. | ||
choosing the size of the government deficit. | ||
controlling the money supply. |
4 points
Question 25
Along a production possibilities frontier for real GDP and the quantity of leisure time, as leisure time increases, real GDP:
decreases. | ||
increases. | ||
stays the same. | ||
could increase, decrease or stay the same. |