BFIB3002 WEEK 5 QUIZ

________ refers to the superior features of a country that provide unique benefits in global competition, typically derived from either natural endowments or deliberate national policies.

• A) Comparative advantage

• B) Competitive advantage

• C) Absolute advantage

• D) Industrial cluster

2) Competitive advantage refers to the ________.

• A) belief that national prosperity is the result of a positive balance of trade, achieved by maximizing exports and minimizing imports

• B) superior features of a country that provide unique benefits in global competition, typically derived from either natural endowments or deliberate national policies

   

• C) distinctive assets or competencies of a firm that are difficult for competitors to imitate and are typically derived from specific

• D) relative absence of restrictions to the flow of goods and services between nations

3) The condition that results when a nation's exports are greater than its imports is called ________.

 

• A) a trade deficit

• B) dumping

• C) mercantilism

• D) a trade surplus

4) In his International Product Life Cycle (IPLC) Theory, Raymond Vernon observed that each product and its manufacturing technologies go through three stages of evolution: introduction, maturity, and ________.

• A) decline

• B) standardization

• C) growth

• D) diversification

5) According to Porter's competitive advantage of nations, ________ refer to the nature of home-market demand for specific products and services.

 

• A) firm strategy, structure, and rivalry

• B) factor conditions

• C) demand conditions

• D) demand liabilities

6.) Which of the following is an example of a location-specific advantage?

• A) managerial skills

• B) skilled labor

• C) proprietary knowledge

• D) the ability to reduce buyer uncertainty

7) Which of the following is the main cultural motive behind government intervention in trade?

• A) Promotion of strategic trade policies

• B) Protection of jobs

• C) Protection of national identity

• D) Protection of young industries from competition

   

8) A foreign trade zone is primarily used by governments to ________.

• A) protect currency rates

• B) enforce tariffs and duties

• C) monitor foreign investments

• D) spur economic development

9) Government trade promotion agencies ________.

• A) enable imports at discounts

• B) set up foreign trade zones across the country

• C) promote a nation's exports

• D) place voluntary export restraints on companies that fail to export adequately

10) ________ represents the purchase of physical assets or a significant amount of the ownership (stock) of a company in an-other country to gain a measure of management control.

• A) Foreign direct investment

• B) Portfolio investment

• C) Capital investment

• D) Controlling ownership