Economics Mcqs

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. 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

A. marginal cost pricing
B. full cost pricing
C. price discrimination
D. transfer pricing

A. multinational corporation
B. international joint venture
C. horizontal merger
D. vertical merger

A. exporting American jobs by investing overseas
B. exporting American jobs by keeg investment in the U.S
C. importing cheap foreign workers by shifting U.S investment overseas
D. importing cheap foreign workers by keeg U.S investment at home