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Why Should Managers in International Business Understand International Trade Theories

Question 3

Multiple Choice

Why should managers in international business understand international trade theories?


A) Countries' trade policies, based on trade theories, influence which products companies might export to given countries.
B) The understanding helps managers decide whether their companies should follow laissez-faire management practices.
C) The theories help managers decide whether to use large-scale versus small-scale technologies for serving their export markets.
D) The comprehension is useful when deciding whether to transfer managers abroad to manage foreign operations.

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