Concern about the ability of independent foreign firms to maintain product quality
A. is an inherent disadvantage faced by the multinationals.
B. makes FDI preferable to licensing firms in the foreign markets.
C. makes licensing firms in the foreign markets preferable to foreign direct investment (FDI).
D. often results in the formation of a license agreement between a foreign firm and a multinational enterprise.
Answer: B
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Figure 4.4 illustrates the supply of tacos. An increase in the supply of tacos is represented by a movement from
A) point a to point b. B) point c to point b. C) S0 to S1. D) S2 to S1.
The aggregate supply and aggregate demand model describes the interaction of which macroeconomic variables?
A. Output and the price level B. Employment and immigration C. Prices and immigration D. Output and number of sellers
In strategic trade bargaining it is sometimes reasonable to be unreasonable.
Answer the following statement true (T) or false (F)
Using the information in the figure and table below, which of the following statements is true?
a. Consumers are just as well off in all three markets. b. Producers are just as well off in all three markets. c. Deadweight loss is the same in all three markets. d. Total welfare is lower in a monopoly that charges a single price than the monopoly in either perfect competition or perfect price discrimination.