FINAL EXAM 1. The demand for U.S. exports tends to increase when: A)economic growth in exotic countries decreases. B) the currencies of inappropriate countries strengthen against the dollar. C) U.S. inflation rises. D) no(prenominal) of the above 2. Which of the pastime theories identifies specialization as a reason for international pass? A)theory of comparative advantage. B)imperfect markets theory. C)product cycle theory. D)none of the above 3. As a pass on of the European Union, restrictions on exports mingled with _______ were reduced or eliminated. A) segment countries and the U.S. B) member countries C) member countries and European non-members D) none of the above 4. Which of the following is an example of put external coronation? A)exporting to a country. B)establishing licensing arrangements in a country. C)purchasing subsisting companies in a country. D)investing directly (without brokers) in foreign stocks. 5. Which of the following industries would approximately likely take advantage of tear down cost in some less developed foreign countries? A)assembly fund production. B)specialized professional services. C)nuclear projectile planning. D)planning for more sophisticated computer technology. 6. assume foreign investment into the U.S. represents a ________. A) capital inflow B) allocate inflow C) capital outflow D) trade outflow | call up the United States and Great Britain are on the specie step and the price of gold in the U.S. is heady at $ coulomb per ounce and the | |price of gold in Britain is fixed at £50. What exchange rate must prevail amidst the dollar and the lbf.?
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