Question 1

American critics of U.S.multinational enterprises contend that they promote

Accepted Answer

American critics of U.S. multinational enterprises usually argue that these companies promote all of the above mentioned practices, including runaway jobs, technology transfers abroad, and tax evasion, among other things. These practices, according to critics, mostly benefit the companies' profit margins rather than the interests of the American people, and have the potential to harm American workers, businesses, and the economy as a whole.

Question 2

Canada views immigrants as:

Accepted Answer

Canada views immigrants as both friends and necessary to the Canadian economy. Canada's immigration policy is designed to attract skilled and talented people from around the world to help grow the economy and contribute to society. Additionally, Canada values diversity and inclusivity and recognizes that immigrants bring unique perspectives and experiences that enrich Canadian culture.

Question 3

Horizontal integration would occur if General Motors sets up a subsidiary in Mexico to produce automobiles identical to those that it produces in the United States.

Accepted Answer

Horizontal integration involves a company expanding into the same industry, such as General Motors setting up a subsidiary to produce automobiles in another country.

Question 4

-Consider Figure 9.3.If Honduran migration to Mexico results in the labor force increasing to 12 workers,denoted by schedule S₁,the:

Accepted Answer

When the labor force increases due to migration, the supply of labor increases, leading to a decrease in the wage rate. As wages decrease, the cost of labor for capital owners decreases, potentially increasing their profits or payments.

Question 5

Joint ventures may lead to

Accepted Answer

The answer of Joint ventures may lead to
...

Question 6

Exxon Oil Co.would undertake forward vertical integration if its retailing division acquired oil wells in the Middle East.

Accepted Answer

The answer of Exxon Oil Co.would undertake forward vertical integration...

Question 7

Foreign direct investment typically occurs when

Accepted Answer

Foreign direct investment refers to the investment made by a company or individual from one country in the business interests of another country. It commonly involves investing in plant expansion overseas or setting up a new business venture in a foreign country. The other options, such as transferring jobs overseas, closing foreign production plants or purchasing foreign government bonds, do not align with the typical definition of foreign direct investment.

Question 8

Critics of U.S.trade and immigration policy maintain that

Accepted Answer

Critics of U.S. trade and immigration policy argue that the policies have led to a decline in wages for many Americans, increased the supply of less educated workers in the United States, and negatively affected the employment opportunities of less-skilled American workers. Therefore, all the options (A, B, and C) are correct, and the best answer is D.

Question 9

Vertical integration occurs if a parent multinational corporation establishes foreign subsidiaries to produce intermediate goods or inputs that go into the production of a finished good.

Accepted Answer

This statement accurately describes vertical integration.

Question 10

-Consider Figure 9.3.Policies that permit Honduran workers to freely migrate to Mexico would likely be resisted by:

Accepted Answer

Native Mexican workers would likely resist policies that permit Honduran workers to freely migrate to Mexico because they would face increased competition for jobs, which could lower wages and worsen working conditions. Mexican capital owners, on the other hand, may actually benefit from increased immigration because it could lower labor costs and increase profits. Therefore, the correct answer is B, only native Mexican workers would resist the policy.

Question 11

Multinational corporations sometimes locate manufacturing subsidiaries abroad to avoid tariff barriers which would place their products at a competitive disadvantage in a foreign country.

Accepted Answer

Multinational corporations may choose to locate manufacturing facilities in a foreign country to avoid tariff barriers and gain a competitive advantage in that market. By producing locally, they can avoid import tariffs on their products and may also benefit from lower labor costs and other advantages that the foreign location may offer.

Question 12

-Consider Figure 9.3,at labor market equilibrium with supply S₀,_____ workers are hired at a wage rate of $____ per hour,while total wages equal ____.

Accepted Answer

The answer of 
-Consider Figure 9.3,at labor market equilibrium with...

Question 13

____ refers to highly educated and skilled people who migrate from poor developing countries to wealthy industrial countries.

Accepted Answer

Brain drain refers to the emigration of highly educated and skilled people from poor developing countries to wealthy industrial countries. This migration of talent can have negative impacts on the countries losing their skilled workforce, such as a shortage of skilled professionals and a lack of economic growth.

Question 14

Forward vertical integration would occur if a U.S.automobile manufacturer acquired a German subsidiary.

Accepted Answer

The question does not relate to the information presented in Figure 9.3 or the Mexican labor market. It is a separate question about vertical integration and the nationality of the subsidiary being acquired. The correct answer is false, as vertical integration would only occur if the subsidiary involved in the acquisition was involved in the same industry or supply chain as the acquiring company. Nationality alone does not determine whether an acquisition would constitute vertical integration.

Question 15

International trade in goods and services and flows of productive factors are substitutes for each other.

Accepted Answer

The answer of International trade in goods and services and...

Question 16

Figure 9.2.U.S.Labor Market 
-Consider Figure 9.2.Policies that permit Mexican workers to freely migrate to the United States would likely be resisted by:

Accepted Answer

Native U.S. workers would likely resist policies that allow Mexican workers to migrate freely to the United States because increased competition for jobs could lead to lower wages and fewer job opportunities for native workers. U.S. capital owners, on the other hand, may support such policies to access cheaper labor. Therefore, policies promoting free movement of Mexican workers would not be resisted by U.S. capital owners, but could be resisted by native U.S. workers.

Question 17

"Guest worker" programs generally result in temporary migration of workers from:

Accepted Answer

Guest worker programs typically involve the temporary migration of workers from impoverished nations to wealthy nations, where there may be a shortage of labor in certain industries. The workers are usually hired on a temporary basis to fill specific jobs and are not intended to settle permanently in the host country.

Question 18

Most vertical foreign investment,as implemented by multinational corporations,is "forward" in nature rather than "backward."

Accepted Answer

Most vertical foreign investment by multinational corporations is "backward" in nature, meaning it is primarily focused on accessing raw materials or inputs for their production processes, rather than "forward" investments which would involve investing in distribution or sales operations in foreign markets.

Question 19

-Consider Figure 9.3.At labor market equilibrium,the payment to Mexican capital owners equals:

Accepted Answer

The answer of 
-Consider Figure 9.3.At labor market equilibrium,the payment...

Question 20

Most multinational corporations have a low ratio of foreign sales to total sales,usually 5 percent or less.

Accepted Answer

This statement is false. Many multinational corporations have a high ratio of foreign sales to total sales, often exceeding 50 percent.

Quiz 9: International Factor Movements and Multinational Enterprises

American critics of U.S.multinational enterprises contend that they promote

Canada views immigrants as:

Horizontal integration would occur if General Motors sets up a subsidiary in Mexico to produce automobiles identical to those that it produces in the United States.

-Consider Figure 9.3.If Honduran migration to Mexico results in the labor force increasing to 12 workers,denoted by schedule S₁,the:

Joint ventures may lead to

Exxon Oil Co.would undertake forward vertical integration if its retailing division acquired oil wells in the Middle East.

Foreign direct investment typically occurs when

Critics of U.S.trade and immigration policy maintain that

Vertical integration occurs if a parent multinational corporation establishes foreign subsidiaries to produce intermediate goods or inputs that go into the production of a finished good.

-Consider Figure 9.3.Policies that permit Honduran workers to freely migrate to Mexico would likely be resisted by:

Multinational corporations sometimes locate manufacturing subsidiaries abroad to avoid tariff barriers which would place their products at a competitive disadvantage in a foreign country.

-Consider Figure 9.3,at labor market equilibrium with supply S₀,_ workers are hired at a wage rate of $ per hour,while total wages equal .

____ refers to highly educated and skilled people who migrate from poor developing countries to wealthy industrial countries.

Forward vertical integration would occur if a U.S.automobile manufacturer acquired a German subsidiary.

International trade in goods and services and flows of productive factors are substitutes for each other.

Figure 9.2.U.S.Labor Market -Consider Figure 9.2.Policies that permit Mexican workers to freely migrate to the United States would likely be resisted by:

"Guest worker" programs generally result in temporary migration of workers from:

Most vertical foreign investment,as implemented by multinational corporations,is "forward" in nature rather than "backward."

-Consider Figure 9.3.At labor market equilibrium,the payment to Mexican capital owners equals:

Most multinational corporations have a low ratio of foreign sales to total sales,usually 5 percent or less.

Quiz 9: International Factor Movements and Multinational Enterprises

American critics of U.S.multinational enterprises contend that they promote

Canada views immigrants as:

Horizontal integration would occur if General Motors sets up a subsidiary in Mexico to produce automobiles identical to those that it produces in the United States.

-Consider Figure 9.3.If Honduran migration to Mexico results in the labor force increasing to 12 workers,denoted by schedule S1,the:

Joint ventures may lead to

Exxon Oil Co.would undertake forward vertical integration if its retailing division acquired oil wells in the Middle East.

Foreign direct investment typically occurs when

Critics of U.S.trade and immigration policy maintain that

Vertical integration occurs if a parent multinational corporation establishes foreign subsidiaries to produce intermediate goods or inputs that go into the production of a finished good.

-Consider Figure 9.3.Policies that permit Honduran workers to freely migrate to Mexico would likely be resisted by:

Multinational corporations sometimes locate manufacturing subsidiaries abroad to avoid tariff barriers which would place their products at a competitive disadvantage in a foreign country.

-Consider Figure 9.3,at labor market equilibrium with supply S0,_____ workers are hired at a wage rate of $____ per hour,while total wages equal ____.

____ refers to highly educated and skilled people who migrate from poor developing countries to wealthy industrial countries.

Forward vertical integration would occur if a U.S.automobile manufacturer acquired a German subsidiary.

International trade in goods and services and flows of productive factors are substitutes for each other.

Figure 9.2.U.S.Labor Market -Consider Figure 9.2.Policies that permit Mexican workers to freely migrate to the United States would likely be resisted by:

"Guest worker" programs generally result in temporary migration of workers from:

Most vertical foreign investment,as implemented by multinational corporations,is "forward" in nature rather than "backward."

-Consider Figure 9.3.At labor market equilibrium,the payment to Mexican capital owners equals:

Most multinational corporations have a low ratio of foreign sales to total sales,usually 5 percent or less.

-Consider Figure 9.3.If Honduran migration to Mexico results in the labor force increasing to 12 workers,denoted by schedule S₁,the:

-Consider Figure 9.3,at labor market equilibrium with supply S₀,_ workers are hired at a wage rate of $ per hour,while total wages equal .