18 Questions
What does globalization of production refer to?
Sourcing goods and services from different locations to utilize differences in factors of production.
What is a key benefit of globalization mentioned in the text?
Increased revenue opportunity through global sales.
What characterized mercantilism, as described in the text?
Countries sought to export more than they imported.
Which of the following is NOT a factor causing globalization as mentioned in the text?
Technological stagnation
What differentiates norms from culture as described in the text?
Culture encompasses values and norms, while norms prescribe appropriate behavior.
What is one of the challenges mentioned in the text regarding globalization?
Superficial similarities between nations
Which theory predicts that countries will export goods that make intensive use of locally abundant factors?
Heckscher-Ohlin Theory
What does the Theory of Absolute Advantage suggest countries should specialize in?
Goods for which they have a competitive advantage
Which theory focuses on producing at a lower cost?
Theory of Absolute Advantage
What does comparative advantage measure?
Opportunity cost of producing a good
According to David Ricardo, how can a country boost its economic growth the most?
Focusing on industries with the most substantial comparative advantage
What is the opportunity cost of producing clothing if the US produces it according to the text?
$5 foregone for every 12 aeroplanes produced
Which stage of the Product Life Cycle Theory involves foreign producers beginning to produce for their home markets?
Stage 4
According to Porter's National Competitive Advantage theory, what are the crucial features that determine the success of an organization in the international market?
Home country factors
At which point in the Product Life Cycle Theory do producers from advanced countries with lower labor costs start exporting to the U.S.?
Stage 6
How can governments act as catalysts to improve a country's competitive advantage according to Porter's Diamond Theory?
By providing incentives for research and development
Which factor limits the potential for exports from the U.S. in the Product Life Cycle Theory?
Foreign producers setting up facilities in their home markets
In which stage of the Product Life Cycle Theory do U.S. firms consider setting up production facilities in advanced countries?
Stage 4
Learn about the shift towards a more integrated world economy and the globalization of production. Explore the pros and cons of globalization, including increased revenue opportunities and reduced costs, as well as challenges related to different national problems.
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