33:011:100 Chapter Notes - Chapter 4: Franchising, General Agreement On Tariffs And Trade, Joint Venture

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raspberryhamster349

10 Mar 2016

School

Rutgers University

Department

Administrative Studies

Course

33:011:100

Professor

Professor Reaves

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Document Summary

Exports: selling domestically produced products to foreign nations. Globalization of markets: moving away from thinking the market is only local or national market to market as being the entire world. Globalization of production: moving production to locations to take advantage of lower prices. Outsourcing- when you assign certain tasks to other companies. Offshoring- is moving your product to other places (from a domestic place to a foreign). Comparative advantage- when you can produce a product more efficiently (better skills). Absolute advantage- no real reason, but a country is able to produce something much better than any other country for no real reason. Definition: the difference between a nations imports and exports. When more exports than imports it is a positive balance of trade known as trade surplus. If more imports than exports it is a negative balance of trade called a trade deficit. Definition: the overall flow of money into or out of a country.

Related Questions

61. Which of the following are the largest two sources of federal government revenues?

a. Revenue from tariffs and other fees

b. corporate income taxes and sales taxes.

c. Individual income taxes and social insurance taxes

d. Excise and other taxes

62. If a 10% increase in price leads to a 15% decrease in quantity demanded, demand is -----------------------------

a. perfectly elastic

b. elastic

c. unit elastic

d. inelastic

63. When a comparative advantage exists, what should the producer with the comparative advantage do?

a. Produce the item for which he does not have the comparative advantage

b. Produce both items

c. Produce the item for which he does have the comparative advantage

d. Produce neither item

64. Dumping occurs -------------------------------------------------------

a. when a country sells a product at a higher price in a foreign market than it does in its domestic market.

b. when a country sells defective units of its products in a foreign market, while keeping the properly-made units for its home market.

c. when a country sells a product at a lower price in a foreign market than it does in its domestic market.

d. when a country fails to follow the specificity principle.

65. The level of output that corresponds to the full employment of the labor force

a. is also called potential GDP

b. shifts to the right as the economy accumulates more resources

c. continuously shifts to the right over time as technological advances take place

d. all of the above

66. Full employment is always a normal condition

a. in the vertical AS-curve case

b. in the classical AS-curve case

c. if wages and prices are assumed to be perfectly flexible

d. all of the above

67. Which of the following would be included in the income approach to measure GDP?

a. Wages, profits, rents

b. Wages, profits, investment spending

c. The value added in production

d. Wages, rents, investment spending, consumption spending

e. None of the above

68. Which of the following would not be included in the U.S. GDP, as measured by the income approach?

a. The wages earned by a secretary working in the U.S.

b. The profits earned by a German company from its plant located in the U.S.

c. The profits earned by a U.S. company from its plant located in China

d. The rents earned by a U.S. landlord with rental properties.

69. If an economy's production possibilities curve has shifted out, we can unambiguously conclude that:

a. the supply of natural resources increased

b. potential GDP increased

c. technology improved

d. the supply of labor increased

70. When there is a downward shift in supply, equilibrium price ------------- and equilibrium quantity ----------------

a. falls, rises

b. falls, falls

c. rises, rises

d. rises, falls

71. When there is an upward shift in demand, equilibrium price ------------- and equilibrium quantity ----------------

a. falls, falls

b. rises, rises

c. rises, falls

d. falls, rises

72. Why should countries trade?

a. To help them thrive

b. To increase output

c. To decrease output

d. To keep them busy

73. Which of the following is a situation in which trade is advantageous?

a. Two countries produce the same goods for the same costs

b. Two countries are isolated

c. Two countries produce different goods for different costs

d. Two countries have the same markets

74. If there are two producers and two products, which of the following cannot happen?

(A) A producer has an absolute advantage on one product

(B) A producer has the comparative advantage on both products

(D) A producer has an absolute advantage on both products

75. Frequently a firm will go abroad to --------------------------

a. Protect its home market

b. Earn greater profits

c. test market a product

d. all of the above.

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Question 6: Which of the following economic goals focuses on equal opportunities for education? (5 points)

-Equity

-Freedom

-Growth

-Security

Question 7: Marcel takes out student loans and works part-time to put himself through college. In time, he earns an advanced medical degree and goes to work in an understaffed city -hospital. Marcel's economic decisions benefit the goal of efficiency by (5 points)

-making his own job

-related decisions

-paying back loans to reduce the debt

-contributing to the nation's productivity

-taking advantage of equal opportunities

Question 8: Two countries produce milk and dairy products efficiently. Neither has an absolute advantage. However, Country A exports milk to Country B, and Country A imports cotton from Country B. Which of the following is inferred? (5 points)

-The opportunity cost of producing milk is lower for Country A.

-The opportunity cost of producing cotton is higher for Country B.

-Country A has a natural resource advantage in cotton.

-Country B has a natural resource advantage in milk.

Question 9: Worker hours to produce one unit of natural gas; Worker hours to produce one unit of oil; Brazil 4 9; Argentina 2 10; Mexico 3 7; United States 1 6. According to the chart, which country has the comparative advantage in oil production? (5 points)

-Brazil

-Mexico

-Argentina

-United States

Question 10: The United States can manufacture books at a much more rapid pace than manufacturers in Indonesia. Which of the following is a reason? (5 points)

-Indonesia, as a developed country, has a highly paid and experienced workforce

-Indonesia, as a developing country, has a less advanced manufacturing infrastructure

-The United States, as a developing country, has a high comparative advantage in manufacturing.

-The United States, as a developed country, has a lower cost of living than Indonesia

Question 11: A group of nations establishes a free-trade zone. What is the most likely effect? (5 points)

-Cost of trade increases

-Exports decrease

-Imports decrease

-Trade increases

Question 12: The United States may have a tariff on cotton products from China in order to (5 points)

-prevent Chinese manufacturers from losing profit because of low prices

-protect the business of the American cotton growers and manufacturers

-stop trade due to political disagreement on economic policy

-promote sales in the United States of cotton products from China

Question 13: A Chinese international salesperson hoping to increase exports to the U.S. may worry about the inflation of the U.S. dollar because the inflation may (5 points)

-increase the United States' supply of Chinese products

-decrease tariffs on Chinese products sold to the United States

-increase taxes on the United States' products sold to China

-reduce the United States' demand for Chinese products

Question 14: How would a strong U.S. dollar impact the trade of grain produced in the United States? (5 points)

-U.S. grain exports decrease

-U.S. grain exports increase

-U.S. grain imports decrease

-U.S. grain imports stagnate

Question 15: Which of these can be a result of inflation? (5 points)

-Businesses grow cautious about spending

-The government has to cut spending

-The price of household items increases

-Workers benefit from a lower cost of living

Question 16: If the inflation rate increases faster than their income, people will most likely (5 points)

-use a higher proportion of their incomes on basic needs

-spend a lower proportion of their incomes on basic needs

-get more goods and services for less money

-obtain fewer goods and services for less money

Question 17: To increase your standard of living, your wages must (5 points)

-rise faster than the inflation rate

-rise more slowly than the inflation rate

-keep pace with the inflation rate

-have a negative inflation rate

Question 18: Look at the map showing the European Union (EU) and its free-trade agreement (FTA) countries. Which is true about most current EU free-trade agreements? (5 points)

-The European Union's free-trade agreements are with all of the most developed nations in the world.

-The European Union's free-trade agreements include agreements with both developed and developing nations.

-The European Union's free-trade agreements focus on nations with access to overland trade routes

-The European Union's free-trade agreements focus on the Southern Hemisphere, as distant countries have access to goods not grown in Europe.

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Please answer all of the following multiple choice questions... Thank you!

Hours to Produce One Unit
	Worker hours to produce yarn	Worker hours to produce fabric	Additional worker hours to produce fabric instead of yarn
Country A	8	12	?
Country B	4	13	?

Based on the data in the chart, which of the following scenarios presents the most efficient use of resources? (5 points)

	Country A produces yarn and fabric, and Country B imports both
	Country A produces yarn, and Country B produces fabric
	Country B produces yarn, and Country A produces fabric
	Country B produces yarn and fabric, and Country A imports both

	Worker hours to produce one unit of oil	Worker hours to produce one unit of natural gas
Brazil	8	4
Argentina	10	2
Mexico	7	3
United States	6	1

According to the chart, which country has an absolute advantage over the other countries in oil production? (5 points)

	Brazil
	Mexico
	Argentina
	United States

10.

U.S. companies have made fewer manufacturing contracts with China in the last few years, preferring other countries in the region. Which of the following is a potential reason? (5 points)

	China has most-favored-nation trade status with the United States.
	China has large reserves of cheap labor and can produce inexpensive goods.
	China's standard of living has increased, and workers are requesting more pay.
	Shipping costs from China over the Pacific Ocean have decreased.

11.

The U.S. government wants to restrict Nation A's access to weapons-making materials. Which of the following actions will it most likely take? (5 points)

	Establish a free-trade zone with Nation A
	Impose tariffs on certain goods imported from Nation A
	Institute an embargo on trade in certain items with Nation A
	Place a quota on certain types of goods Nation A can export

12.

Because the United States has an embargo on Cuba, (5 points)

	the United States regularly increases the taxes on Cuban imports
	Cuba exports the majority of Cuban products to American companies
	virtually no Cuban products are legally available in the United States
	Cuba must sell products directly to state governments in the United States

13.

Globalization increases the interdependency of the world's countries. Inflation in one country would most likely (5 points)

	not impact inflation in other countries
	cause deflation in other countries
	result in stagflation in other countries
	relate to inflation in other countries

33:011:100 Chapter Notes - Chapter 4: Franchising, General Agreement On Tariffs And Trade, Joint Venture

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