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    IBM Quiz 2 Questions

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    Abdullah Alzabedi

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    © All Rights Reserved
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    IBM Quiz 2 Questions

    Uploaded by

    Abdullah Alzabedi
    10 views3 pages

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    Copyright:

    © All Rights Reserved
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    Download as pdf or txt
    10 views3 pages

    IBM Quiz 2 Questions

    Uploaded by

    Abdullah Alzabedi

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    IBM Quiz 2 Questions

    Prepared by: Group 2


    Chapter 5 :

    1- What are the implications of trade theory for managers and explain one of
    them?

    1 – Location implications: a firm should disperse its various productive activities to


    those counties where they can be performed most efficiently.

    2 – first-mover implications: a first-mover advantage can help a firm dominate


    global trade in that product.

    3 – policy implications: firms should work to encourage governmental policies


    that support free trade.

    2- Is unrestricted free trade always beneficial?

    - Unrestricted free trade is beneficial, but the gains may not be as great as the
    simple model of comparative advantage.

    3- What is Smith’s Theory of absolute advantage?

    Adam Smith argued that a country has an absolute advantage in the production
    of a product when it is more efficient than any other country in producing it.

    4- Does the product life cycle theory hold in these days?

    The theory explains what happened in 1960s and 1970s but the globalization and
    integration of the world economy had made this theory less valid today
    5- What is porter’s diamond of competitive advantage and explain two of them?

    1 – Factor endowments: A nation’s position in factors of production necessary to


    compete in a given industry.

    2 – Demand conditions: The nature of home demand for the industry’s product or
    service.

    3 – Relating the supporting industries: The presence or absence of supplier


    industries and related industries that are internationally competitive.

    4 – Frim strategy, structure and rivalry: The conditions governing how companies
    are created, organized, managed and the nature of domestic rivalry.

    Chapter 6 :

    1- Who are the two sisters along WTO encompassed GATT?

    1 – The general agreement on trade in services (GATS)

    2 – The agreement on trade related aspects of intellectual property rights (TRIPS)

    2- Why do governments intervene in markets?

    For two main reason:

    1 – Political arguments 2 – Economic arguments

    3- What are the economic arguments for government intervention?

    1 – The infant industry argument: An industry should be protected until it can


    develop and be viable and competitive internationally.

    2 – Strategic trade policy: In cases where they may be important first


    mover advantages, governments can help firms from their countries
    attain these advantages.
    4- How do governments intervene in markets?
    Through:
    1 – Tariffs 2 – Subsidies 3 – Import quotas
    4 – Voluntary export restraints 5 – Local content requirements
    6 – Administrative Policies 7 – Anti-dumping policies

    5- When is an industry “grown up”?


    If a country has the potential to develop a viable competitive position its firms
    should be capable of raising necessary funds without additional support from the
    government.

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