Question 1. The common currency of most of the countries of the European Union is called:

the euro-dollar.

the european currency unit (E.C.U.).

the thaler.

the euro.

None of the above

Question 2. In 2007, the United States exported more goods than any other country in the world

True

False

Question 3. The Heckscher-Ohlin Theory holds that countries that have an abundance of certain resources enjoy an absolute or comparative advantage over other countries. Which of the following is NOT one of the factors that Heckscher and Ohlin considers scarce?

Land

Labor

Capital

Education

None of the above

Question 4. Inventory reduction was a major goal of companies in the 1980s. This change was due to the increasing costs of oil and of products manufactured with oil.

True

False

Question 5. Early logisticians were international traders, and, although they used different techniques and means of transportation, they were concerned with the same issues that present-day logisticians are.

True

False

Question 6. Porter's Cluster Theory holds that geographical areas with a large concentration of a certain type of companies allow that area to obtain an absolute or comparative advantage. How do those companies benefit from the presence of other companies like them in the same area?

They can attract talented employees.

Such concentration fosters creativity as employees' know-how travels from employer to employer.

The concentration of talent fosters innovation.

All of the above

None of the above

Question 7. The globalization of markets is a recent phenomenon.

True

False

Question 8. On occasion, a firm will respond to a competitor's move by retaliating. For example, Linde Gas (an American firm producing industrial gasses) entered the French market when Air Liquide (a French company in the same industry) decided to enter the U.S. market. Such a move is considered a:

cost driver.

competitive driver.

technology driver.

market driver.

None of the above

Question 9. According to the International Product Life Cycle Theory, the country(ies) most likely to manufacture a product that has been recently developed (one that is the result of a brand-new design and uses patented technology) and is in its first commercialization year, is (are):

the country of innovation only.

developing countries.

any country with the manufacturing technology necessary to manufacture it.

other developed countries.

None of the above

Question 10. World trade in services represent a higher percentage of total world trade than does world trade in merchandise.

True

False