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Question
If a company were to draw from the ideas proposed in the various theories of international trade, from a profit perspective, how would it go about selecting locations for its businesses?A.It would concentrate its productive activities mostly in developing countries.
B.It would concentrate its productive activities in its home country.
C.It would disperse its productive activities to those countries where they can be performed most efficiently.
D.It would disperse its productive activities across all countries that serve as its market.
E.It would concentrate its productive activities mostly in developed countries.
Answer
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Related questions
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Which of the following states that for any two countries, the spot exchange rate should change in an equal amount but in the opposite direction to the difference in nominal interest rates between the two countries?
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Which of the following occurs when a government increases the money supply?
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A.E$/ = (1 + P)/P$
B.E$/ = (1 + P$)/P
C.E$/ = P/P$
D.E$/ = P$/P
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Q:
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What is meant by translation exposure?
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B.The impact of currency exchange rate changes on the reported financial statements of a company
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Which of the following observations is true of technical analysis, an approach to exchange rate forecasting?
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B.The variables contained in this model typically include relative money supply growth rates, inflation rates, and interest rates.
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A.Elastic
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In which of the following conditions does arbitrage occur?
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If a firm favors a push strategy, using direct selling to educate potential consumers about the features of its products, what kind of products would it most likely sell?
A.Professional services
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Which of the following is true of the barriers to international communication?
A.Noise tends to increase the probability of effective communication.
B.Source effects can be beneficial for an international business when potential consumers in a target country have a bias against foreign firms.
C.Many international businesses try to promote positive source effects by deemphasizing their foreign origins.
D.Fewer firms vie for the attention of prospective customers in developing countries, thus the noise level is lower.
E.Research suggests that a consumer may use country of origin as a cue when evaluating a product, particularly if he or she has detailed knowledge of the product.
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According to research, when do consumers usually use the country of origin as a cue when evaluating a product?
A.When a firm tries to deemphasize its foreign origins
B.When consumers lack detailed knowledge of a product
C.When an advertising campaign stresses the positive performance attributes of a product
D.When a limited number of messages compete with each other for consumers' attention
E.When a firm resorts to personal selling instead of mass media advertising