Economics MCQs

Page No. 229

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


asharing research and development cost among corporations

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b forestalling protectionism against imports

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cestablishing work rules promoting higher labor productivity

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doperating at diseconomy-of-scale output levels

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____ was a strategy for industrial development popular in Latin America in the 1950s 1 1960s for promoting domestic production by erecting high protective tariffs on imports of manufactured goods ?


aexport led growth

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b import substitution

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cdynamic hedging

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dcountervailing duties

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Which of the following is not an example of foreign direct investment ?


a the construction of a new auto assembly plant overseas

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bthe acquisition of an existing steel mill overseas

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cthe purchase of bonds or stock issued by a textile company overseas

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d the creation of a wholly owned business firm overseas

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________ refers to the price charged for products sold to a subsidiary to a multinational corporation b another subsidiary in another country?


amarginal cost pricing

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bfull cost pricing

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cprice discrimination

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d transfer pricing

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View Answer transfer pricing

Which business device involves the creation of a new business by two or more companies often for a limited period of time ?


amultinational corporation

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b international joint venture

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chorizontal merger

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d vertical merger

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American labor unions have maintained that U.S multinational corporations have been ?


aexporting American jobs by investing overseas

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bexporting American jobs by keeping investment in the U.S

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cimporting cheap foreign workers by shifting U.S investment overseas

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dimporting cheap foreign workers by keeping U.S investment at home

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Firms undertake multinational operations in order to ?


ahire low-income workers

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b manufacture in nations they have difficult exporting to

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cobtain necessary factor inputs

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d All of the above

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View Answer All of the above

The migration of employable workers from low-paying nations to high-paying nations tends to decrease ?


atotal wage income in the world

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bwage disparities

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cbusiness or capitalist income in the world

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dthe productivity of labor

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View Answer wage disparities

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 ?


aR&D generating welfare improved technology

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bdevelopment of more productive machinery

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cnew work rules promoting workers efficiency

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dlower wages extracted from workers

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If a person can be prevented from using a good, the good is said to be ?


aexcludable

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b a common resource

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ca public goods

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drival

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View Answer excludable

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