All of the following statements characterize the comparative advantage principle except ________.
A) the principle provides the foundation for modern international trade
B) cost of production is less important than the ratio of production
C) the exportation of labor-intensive goods should be emphasized
D) nations can trade profitably even if manufacturing costs are high
Question 2Gap analysis may show that the combined market potential among several countries may justify product development costs.
Indicate whether the statement is true or false
Question 3What difficulties of exporting can be minimized by customs brokers?
What will be an ideal response?
Question 4A geocentric staffing policy is one in which all key management positions throughout the company's global operations are filled by host-country nationals.
Indicate whether the statement is true or false
Question 5What is a group? Is it different from a team?
What will be an ideal response?
Question 6A French company that sells goods to a foreign customer whose currency is depreciating against the euro will most likely experience which of the following when completing the sale?
A) The company will receive fewer euros if the sales price was expressed in the buyer's currency.
B) The company will receive more euros if the sales price was expressed in the buyer's currency.
C) The company will receive fewer euros if the sales price was expressed in euros originally.
D) The company will receive more euros if the sales price was expressed in euros originally.
Question 7Considering the relative efficiency held by nations led to which of the following concepts regarding the rationale for international trade?
A) monopolistic advantage theory
B) internalization theory
C) absolute advantage principle
D) comparative advantage principle
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