C211 Global Economics for Managers Practice Questions - Set 3 - Part 2

Test your knowledge of Global Economics for Managers concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 21: What is the economic theory that supports minimal government intervention in trade and commerce?

a) Protectionism

b) Mercantilism

c) Free market view

d) National competitive advantage theory

Question 22: What are the two key features of a perfectly competitive market?

a) Many buyers and few sellers, with differentiated products

b) Few buyers and many sellers, with identical products

c) Many buyers and many sellers, with identical products

d) Few buyers and few sellers, with differentiated products

Question 23: What term refers to government-imposed restrictions on the quantity of imports?

a) Tariffs

b) Quotas

c) Export duties

d) Trade barriers

Question 24: What theory is associated with the notion that countries should trade based on their relative efficiency in producing goods?

a) Absolute advantage theory

b) Comparative advantage theory

c) Mercantilism

d) Product life cycle theory

Question 25: What does the "G-20" represent?

a) A group of 20 major emerging economies

b) A group of 19 countries plus the European Union

c) A coalition of the world's 20 largest exporters

d) A trade agreement between 20 global regions

Question 26: What term refers to a situation in which quantity supplied is greater than quantity demanded?

a) Shortage

b) Surplus

c) Equilibrium

d) Supply shock

Question 27: What is the political view that believes in the superiority of private ownership over state ownership in economic policy making?

a) Mercantilism

b) Protectionism

c) Washington Consensus

d) Pragmatic nationalism

Question 28: What is the term for the rate at which one currency can be exchanged for another?

a) Exchange rate

b) Interest rate

c) Inflation rate

d) Purchasing power

Question 29: What is the economic term for goods that are traded in international markets without significant government intervention?

a) Merchandise

b) Free trade

c) Tangible goods

d) Nontariff barrier

Question 30: What is the economic theory that focuses on the dynamic changes in trade patterns based on a product's life cycle?

a) Strategic trade theory

b) Absolute advantage theory

c) Product life cycle theory

d) Factor endowment theory

Question 31: What term refers to intangible services being traded internationally?

a) Goods

b) Services

c) Merchandise

d) Intangibles

Question 32: What is the economic term for the clustering of businesses in a specific geographic area?

a) Agglomeration

b) Market concentration

c) Urbanization

d) Economies of scale

Question 33: What is the legal right to use specific names, brands, and designs to differentiate products?

a) Patent

b) Copyright

c) Trademark

d) Licensing

Question 34: What theory posits that nations should develop comparative advantages based on their locally abundant resources?

a) Resource-based theory

b) Factor endowment theory

c) Comparative advantage theory

d) Mercantilism

Question 35: What is the government's tax on imported goods called?

a) Quota

b) Tariff

c) Trade embargo

d) Export duty

Question 36: What term describes a new corporate entity created and jointly owned by two or more parent companies?

a) Wholly owned subsidiary

b) Joint venture

c) Partnership

d) Franchise

Question 37: What is the risk associated with unauthorized diffusion of firm-specific knowledge called?

a) Piracy risk

b) Knowledge spillover risk

c) Dissemination risk

d) Counterfeiting risk

Question 38: What is the potential loss associated with fluctuations in the foreign exchange market called?

a) Currency risk

b) Exchange rate risk

c) Sovereign risk

d) Political risk

Question 39: What term describes a firm replicating its home country-based activities at the same value chain stage in a host country?

a) Vertical FDI

b) Horizontal FDI

c) Conglomerate FDI

d) Export-oriented FDI

Question 40: What is the economic condition in which a nation exports more than it imports?

a) Trade surplus

b) Trade deficit

c) Balanced trade

d) Trade equilibrium

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