International Trade And Foreign Direct Investment

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Question 1
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The classical international trade theories are from the perspective of a country.

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Question 2
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Trade surplus refers to a situation where the value of imports is greater than the value of exports.

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Question 3
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The economic theory of mercantilism stated that a country's wealth was determined by the amount of its gold and silver holdings.

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Question 4
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Trade deficit refers to a situation where the value of exports is greater than the value of imports.

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Question 5
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The modern international trade theories explain trade from a firm,rather than a country,perspective.

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Question 6
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The new nations of the 1500s promoted exports by imposing restrictions on imports.

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Question 7
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Countries such as China still favor exports and discourage imports through a form of neo-mercantilism.

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Question 8
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Free trade only benefits select industries,at the expense of both consumers and other companies,within and outside of the industry.

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Question 9
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The product life cycle theory has been better able to explain current trade patterns where innovation and manufacturing occur around the world.

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Question 10
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The Internet has lessened the ability of the countries to regulate or strong-arm companies into abiding by their rules and regulations.

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Question 11
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Global businesses can afford to ignore the political and legal climate in countries in which they currently operate.

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Question 12
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A main differentiator of political systems is each system's philosophy on the rights of the individual and the group as well as the role of government.

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Question 13
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Most countries maintain a balance between anarchism and totalitarianism and the balance is often a reflection of the country's history,culture,and religion.

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Question 14
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Totalitarianism occurs when an authoritarian leadership is motivated by a distinct ideology.

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Question 15
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Capitalism is an economic system in which the means of production are owned and controlled privately.

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Question 16
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Political stability is a key part of government efforts to attract foreign investment to their country.

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Question 17
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Foreign direct investment refers to the investment in a company's stocks,bonds,or assets,but not for the purpose of controlling or directing the firm's operations or management.

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Question 18
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Companies make portfolio investment by participating in a joint venture with a foreign company.

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Question 19
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The foreign direct investment made by a company is primarily a part of its long-term strategy.

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Question 20
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Governments want to be able to control and regulate the flow of FDI,so that local political and economic concerns are addressed.

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