International Economics International Edition 14th Edition by Robert Carbaughth Edition

Test Bank For International Economics International Edition 14th Edition by Robert Carbaugh

CHAPTER 9

MULTIPLE CHOICE

1.”Threat spreading” is a motive most certainly to be served when corporations endure:

a.

Horizontal integration

b.

Vertical integration

c.

Conglomerate integration

d.

Not one of the above

ANS:CPTS:1DIF:Average

NAT: BPROG: Reflective Pondering TOP: Motives for International Direct Funding

KEY: @2

2.The supply (dwelling) location of many of the world’s main multinational enterprises is:

a.

North America and Europe

b.

North America and Asia

c.

Europe and South America

d.

Europe and Asia

ANS:APTS:1DIF:Average

NAT: BPROG: Reflective Pondering TOP: The Multinational Enterprise

KEY: @1

3.Which kind of multinational diversification happens when the dad or mum agency establishes overseas subsidiaries to supply intermediate items going into the manufacturing of completed items?

a.

Ahead vertical integration

b.

Backward vertical integration

c.

Ahead horizontal integration

d.

Backward horizontal integration

ANS:BPTS:1DIF:Average

NAT: BPROG: Reflective Pondering TOP: The Multinational Enterprise

KEY: @1

4.Suppose that an American vehicle producer establishes overseas subsidiaries to market the vehicles. This observe is known as:

a.

Ahead vertical integration

b.

Ahead conglomerate integration

c.

Backward vertical integration

d.

Backward conglomerate integration

ANS:APTS:1DIF:Average

NAT: BPROG: Reflective Pondering TOP: The Multinational Enterprise

KEY: @2

5.Suppose {that a} metal producer headquartered in Japan units up a subsidiary in Canada to supply metal. This observe is known as:

a.

Conglomerate integration

b.

Ahead vertical integration

c.

Backward vertical integration

d.

Horizontal integration

ANS:DPTS:1DIF:Average

NAT: BPROG: Reflective Pondering TOP: The Multinational Enterprise

KEY: @2

6.In the course of the Nineteen Seventies, American oil firms acquired nonenergy firms (e.g., copper, auto elements) in response to anticipated decreases in funding alternatives in oil. One of these diversification is known as:

a.

Horizontal integration

b.

Conglomerate integration

c.

Ahead vertical integration

d.

Backward vertical integration

ANS:BPTS:1DIF:Average

NAT: BPROG: Reflective Pondering TOP: The Multinational Enterprise

KEY: @2

7.Which of the next finest refers back to the outright development or buy overseas of productive services, corresponding to manufacturing crops, by home residents?

a.

Direct funding

b.

Portfolio funding

c.

Quick-term capital funding

d.

Lengthy-term capital funding

ANS:APTS:1DIF:Average

NAT: BPROG: Reflective Pondering TOP: The Multinational Enterprise

KEY: @2

8.In recent times, the biggest quantity of U.S. direct funding overseas has occurred in:

a.

Central America

b.

South America

c.

Europe

d.

Japan

ANS:CPTS:1DIF:Simple

NAT: BPROG: Reflective Pondering TOP: Motives for International Direct Funding

KEY: @1

9.In recent times, most overseas direct funding in america has come from:

a.

Western Europe

b.

Central America

c.

South America

d.

Asia

ANS:APTS:1DIF:Simple

NAT: BPROG: Reflective Pondering TOP: Motives for International Direct Funding

KEY: @1

10.Most U.S. direct funding overseas happens in:

a.

Communications

b.

Petroleum

c.

Finance and insurance coverage

d.

Manufacturing

ANS:DPTS:1DIF:Simple

NAT: BPROG: Reflective Pondering TOP: Motives for International Direct Funding

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