If the inflation rate in the U.S. is lower than in other countries, this would be expected to
A. increase U.S. exports.
B. reduce U.S. imports.
C. increase the demand for dollars.
D. All of the choices are true.
D. All of the choices are true.
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An international financial crisis can be precipitated when
A) the rate of money supply growth is not the same in all nations. B) newly-acquired political freedom in a country leads some interest groups to form a coalition limiting competition. C) many international investors look at the behavior of a few large investors to determine when funds should be withdrawn from a particular country. D) there is an increase in portfolio investment.
Good Patties is a chain fast-food hamburger restaurant that wants to expand into a foreign market. The managers of Good Patties are most concerned about the financial commitment and desire to keep the potential cost as low as possible. Which of the following entry methods is most likely to address the managers' financial concerns?
A) acquiring a foreign firm through a merger B) establishing a local office/restaurants managed by one of Good Patties' managers C) franchising D) independent entry
Market failure will most likely arise from poor information when the product is
a. a repeat-purchase item. b. easily evaluated on inspection. c. often purchased from the same seller. d. unlikely to be purchased from the same seller in the future.
According to supply-side economists, federal regulation of transportation services
A. Reduces AD. B. Reduces AS. C. Increase AD. D. Increases AS.