Management Notes

Reference Notes for Management

A ______ attempts to limit outsourcing of jobs to foreigners by requiring that a minimum percentage of a product’s value must be produced domestically if that good is to be sold in the domestic market.

A ______ attempts to limit outsourcing of jobs to foreigners by requiring that a minimum percentage of a product's value must be produced domestically if that good is to be sold in the domestic market.

A ______ attempts to limit outsourcing of jobs to foreigners by requiring that a minimum percentage of a product’s value must be produced domestically if that good is to be sold in the domestic market.

 Options:

a. domestic subsidy
b. voluntary restraint agreement
c. domestic content requirement
d. tariff-rate quota

The Correct Answer Is:

c. domestic content requirement

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Export subsidies levied by foreign governments on products in which the United States has comparative disadvantage:

Export subsidies levied by foreign governments on products in which the United States has comparative disadvantage:

Export subsidies levied by foreign governments on products in which the United States has comparative disadvantage:

 Options:

a. lower the welfare of all Americans
b. lead to increases in U.S. consumer surplus
c. encourage U.S. production of competing goods
d. encourage U.S. workers to demand higher wages

The Correct Answer Is:

b. lead to increases in U.S. consumer surplus

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According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will:

According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will:

According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will:

 Options:

a. Devote excessive amounts of resources to agricultural production.
b. Devote insufficient amounts of resources to agricultural production.
c. Export products that are land-intensive.
d. Import products that are land-intensive.

The Correct Answer Is:

c. Export products that are land-intensive.

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MacDougall compared export ratios and labor productivity ratios for the United States and the United Kingdom in order to test the

MacDougall compared export ratios and labor productivity ratios for the United States and the United Kingdom in order to test the

MacDougall compared export ratios and labor productivity ratios for the United States and the United Kingdom in order to test the

 Options:

a. Ricardian theory of comparative advantage
b. Heckscher Ohlin theory of comparative advantage
c. Linder theory of overlapping demand
d. all of the above

The Correct Answer Is:

a. Ricardian theory of comparative advantage

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With international trade, what would be the maximum amount of steel that South Korea would be willing to export to Japan in exchange for each DVD

With international trade, what would be the maximum amount of steel that South Korea would be willing to export to Japan in exchange for each DVD

With international trade, what would be the maximum amount of steel that South Korea would be willing to export to Japan in exchange for each DVD

 Options:

a. One-half ton of steel
b. One ton of steel
c. Two tons of steel
d. Two and one-half tons of steel

The Correct Answer Is:

c. Two tons of steel

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A reduced share of the world export market for the United States would be attributed to:

A reduced share of the world export market for the United States would be attributed to:

A reduced share of the world export market for the United States would be attributed to:

 Options:

a. Decreased productivity in U.S. manufacturing
b. High incomes of American households
c. Relatively low interest rates in the United States
d. High levels of investment by American corporations

The Correct Answer Is:

a. Decreased productivity in U.S. manufacturing

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International trade in goods and services tends to:

International trade in goods and services tends to:

International trade in goods and services tends to:

 Options:

a. Increase all domestic costs and prices
b. Keep all domestic costs and prices at the same level
c. Lessen the amount of competition facing home manufacturers
d. Increase the amount of competition facing home manufacturers

The Correct Answer Is:

d. Increase the amount of competition facing home manufacturers

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International trade tends to cause welfare losses to at least some groups in a country

International trade tends to cause welfare losses to at least some groups in a country

International trade tends to cause welfare losses to at least some groups in a country

 Options:

a. The less mobile the country’s resources
b. The more mobile the country’s resources
c. The lower the country’s initial living standard
d. The higher the country’s initial living standard

The Correct Answer Is:

a. The less mobile the country’s resources

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Which of the following leads to under-capitalization?

Which of the following leads to under-capitalization?

Which of the following leads to under-capitalization?

 Options:

A. raising of more money by issue of shares.
B. acquiring fixed assets on excessive amounts.
C. over-estimation of earnings for enterprise.
D. under-estimation of initial rate of earnings.

The Correct Answer Is:

D. under-estimation of initial rate of earnings.

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When a firm enters into some business which is related with its present business in terms of technology marketing or both it is called as ______________.

When a firm enters into some business which is related with its present business in terms of technology marketing or both it is called as ______________.

When a firm enters into some business which is related with its present business in terms of technology marketing or both it is called as ______________.

 Options:

A. conglomerate diversification.
B. horizontal integration.
C. vertical integration.
D. concentric integration.

The Correct Answer Is:

D. concentric integration.

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