1.

Advantages that arise from using resource endowments or assets that are tied to a particular location and that a firm
finds valuable to combine with its own unique assets are
a) First mover advantages
b) Location advantages
c) Externalities
d) Proprietary advantages

2. Which of the following is not one of the four main benefits of FDI for a host country?
a) the resource transfer effect
b) the employment effect
c) the balance-of-payments effect
d) the exchange rate effect

3. The ________ is the rate at which one currency is converted in another.

a) Exchange rate
b) currency market
c) Foreign exchange market
d) Currency swap rate

4. ___________________ is buying a currency low and selling it high.

a) Currency speculation
b) Arbitrage
c) Short-term investing
d) Long-term investing

5. The case for floating exchange rates includes______________ and ___________.

a. national sovereignty; trade balance adjustments
b. the need to use gold in industrial applications; trade balance adjustments
c. monetary policy autonomy; trade balance adjustments
d. monetary policy autonomy; the entrepreneurial nature of foreign exchange banks
6. _______ refers to the time and effort spent learning the rules of a new market.
a) First mover advantages
b) Strategic commitments
c) Pioneering costs
d) Market entry costs

7. How do most firms begin their international expansion?

a) with a joint venture
b) with a wholly owned subsidiary
c) with licensing or franchising
d) with exporting

8. All of the following are advantages of acquisitions except

a) they are quicker to execute
b) it is easy to realize synergies by integrating the operations of the acquired entities
c) they enable firms to preempt their competitors
d) they may be less risky

9. A political system that stresses the primacy of collective goals over individual goals is called
a) individualism
b) collectivism
c) a democracy
d) a market economy

10. _____ believe (s) that socialism can only be achieved through violent revolution and totalitarian dictatorship.
 a) communists
b) social democrats
c) social republicans
d) Plato

11. A form of government in which one person or political party exercises complete control over all spheres of human life
and prohibits opposing political parties is
a) a democracy
b) a representative democracy
c) totalitarianism
d) socialism

12. ______ is found in states where political power is monopolized by a party according to religious principles.
a) tribal totalitarianism
b) right-wing totalitarianism
c) theocratic totalitarianism
d) communist totalitarianism

13. In which type of economic system are all productive activities privately owned?
a) a mixed economy
b) a command economy
c) a representative economy
d) a market economy

14. Which type of law is based on tradition, precedent, and custom?

a) civil law
b) common law
c) theocratic law
d) contract law

15. Which country is not among the most corrupt countries in the world?
a) Haiti
b) Indonesia
c) Malaysia
d) Nigeria

16. Which theory suggested that comparative advantage arises from differences in national factor endowments?
a) mercantilism
b) absolute advantage
c) Heckscher-ohlin
d) comparative advantage