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0.are requirements that some specific fraction of a good be produced domesticall

ID: 1131464 • Letter: 0

Question

0.are requirements that some specific fraction of a good be produced domestically A. Import quotas B. Voluntary export restraints C. Local content requirements D. Antidumping duties 11. Administrative trade policies are: A. requirements that some specific fraction of a good be produced domestically B. quotas on trade imposed by the exporting country. C. bureaucratic rules designed to make it difficult for imports to enter a country D. designed to punish foreign firms that engage in dumping. 12. suggests that a govemment should use subsidies to support promising firms that are active in newly emerging industries A. The infant industry argument B. Strategic trade policy C. Retaliation policy D. The national security argument 13. FDI occurs when a: A. domestic firm imports products and services from another country. B. firm ships its product from one country to another. C. firm invests in the stock of another company D. firm invests directly in facilities to produce or market a product in a foreign country 14. A greenfield investment: A. is a form of FDI that involves the establishment of a new operation in a foreign country. B. involves a 7 percent stock in an acquired foreign business entity C. involves a merger with a foreign business. D. occurs when a firm acquires another company in a foreign country 15. John Dunning, a champion of the eclectic paradigm, argues that: A. the firms that pioneer a product in their home markets undertake FDI to produce a product for consumption in a foreign market. B. when a firm that is part of an oligopolistic industry expands into a foreign market, other firms in the industry will be compelled to make similar investments. C. combining location-specific assets or resource endowments and the firm's own unique assets often requires FDI D. impediments to the sale of know-how increase the profitability of FDI relative to licensing.

Explanation / Answer

10. Option C: Local content requirements. These are basically requirements that require some ratio of intermediate goods used in production need to be sourced from domestic producers.

11. Option C: Administrative trade policies: These policies are made to make restrictions on imports and boost exports.

13. Option D: FDI occurs when a firm invest directly in producing goods in a foreign country.

14. Option A : Greenfield investment is a form of FDI that establishes its new operations in a foreign country. Apart from new operations, it can also build new production facilities, office building, distribution hubs, etc