Tutorial 4: Foreign Direct Investment (FDI)

Import tariffs

Reduce the overall efficiency of the world’s economy
Which of the following is a benefit of engaging in free trade

Gives countries access to more products that they cannot produce
Which of the following observations is consistent with Michael Porter’s theory of national competitive advantage

Factors such as domestic demand and domestic rivalry determine nations dominance on production
According to Ricardo’s theory of comparative advantage, a country should produce goods...

That it produces most efficiently
...is a direct restriction on the quantity of some good that may be imported into a country

Import Quota
Which of the following is NOT one of the main instruments of trade policy?

Credit Portfolios
According to the 1986 Uruguay Round, the … was to be created to implement the GATT agreement

World Trade Organisation (WTO)
What is the incorrect statement about trade barriers

they may put a firm at a competitive advantage to indigenous (host market) competitors
Example of trade barrier (Japan checking tulips coming from the Netherlands by cutting it vertically)

administrative trade policies
Which of the following terms refers to the extent to which a country is gifted with such resources as land, labour and capital?

Factor endowments

Author

lrimstad

353015

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Tutorial 4: Foreign Direct Investment (FDI)

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MC Questions

Updated

2020-09-01T01:06:49Z

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