MGT 104 Rizal Technological University Information Technology Quiz

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Which of the following is NOT a way that information technology can contribute to a firm's competitive advantage?

Improving the firm's Internet presence

Reducing the firm's reliance on physical infrastructure (correct)

Automating business processes to increase efficiency

Providing real-time data analytics to guide strategic decisions

According to the passage, which of the following is the BEST definition of the term 'economy'?

The collective focus of the study of money, currency and trade

The efficient use of resources in a system of production and distribution

The overall measure of a currency system as it relates to a nation

All of the above (correct)

What is the MAIN difference between 'exporting' and 'export' as defined in the passage?

Exporting is a verb, while export is a noun

There is no difference, the terms are used interchangeably

Exporting refers to the sale of capital, goods, and services across international borders, while export refers only to physical goods

Exporting refers to the act of selling to a foreign country, while export refers to the good or commodity itself (correct)

Which of the following is the BEST definition of 'opportunity cost' provided in the passage?

Both a and b Signup and view all the answers

Which of the following is the BEST definition of 'balance of trade' provided in the passage?

The difference between the monetary value of exports and imports in an economy over a certain period of time Signup and view all the answers

Based on the information provided, which of the following is the MOST accurate statement about the relationship between information technology and competitive advantage?

Information technology can contribute to competitive advantage by outperforming competitors in various ways, such as Internet presence Signup and view all the answers

Which theory suggests that the location of sales and optimal production location change as a product matures, affecting trade flow and direction?

The Product Life Cycle Theory Signup and view all the answers

What can have important implications for international trade?

The ability of firms to gain economies of scale Signup and view all the answers

What does the Leontief Paradox Theory theorize about the United States' trade patterns?

The US would be an exporter of capital-intensive goods and an importer of labor-intensive goods Signup and view all the answers

Which theory implies that nations may benefit from trade even when they do not differ in resource endowments or technology?

The New Trade Theory Signup and view all the answers

What is the term used to describe unit cost reductions associated with a large scale of output?

Economies of scale Signup and view all the answers

Which of the following is NOT a theory discussed in the text?

The Heckscher-Ohlin Theory Signup and view all the answers

Which of the following best describes the theory of absolute advantage?

It refers to the ability of a party to produce more of a good or service than its competitors while using the same amount of resources. Signup and view all the answers

What is the main criterion used to determine absolute advantage according to the theory?

The productivity of labor Signup and view all the answers

If a country has no absolute advantage in producing any good or service compared to its trading partners, what does the theory of absolute advantage suggest?

The country should not engage in international trade. Signup and view all the answers

What is the main limitation of the theory of absolute advantage in explaining international trade patterns?

It assumes that labor is the only factor of production. Signup and view all the answers

Which of the following statements about strategic advantage and competitive advantage is correct?

Competitive advantage is a broader concept that encompasses strategic advantage, which is specific to a firm's strategies and tactics. Signup and view all the answers

What is the relationship between absolute advantage and competitive advantage?

Absolute advantage is a necessary condition for achieving competitive advantage. Signup and view all the answers