Question

Under Purchasing Power Parity:

Select one:

a. Tradable goods such as gold and petroleum should have similar costs around the world

b. Non-tradable services, such as haircuts and hotel rooms and taxi rides, may differ; making some countries cheap to visit and some countries expensive

c. All goods and services in theory should cost the same

d. All of the above, (A), (B), and (C) are true

e. Only (A) and (B) above are true.

Five (5) instruments governments use to inhibit international trade are:

Select one:

a. Tariffs, military intervention, political lobbying, blocking membership of the World Trade Organization, and local content requirements

b. Import quotas, tariffs, local content requirements, political lobbying, and military intervention

c. Administrative policies, local content requirements, import quotas, subsidies, and tariffs

d. Local content requirements, political lobbying, subsidizing State-Owned Enterprises, administrative policies, import quotas

e. Import quotas, marketing boards, political lobbying, tariffs, and local content requirements.

A __________does not identify itself with one national home.

Select one:

a. Cross-cultural enterprise

b. Multinational company

c. Transnational corporation

d. International conglomerate

e. Global enterprise

Answer 1

Q1 Option E is correct

PPP compares different countries currencies to a basket of good approach

According, two countries at par to each other when basket of good priced the same in both countries taking into account the exchange rate

So if a basket of good can be buy by 500 dollars in Canada and same can be buy with 2000 hong Kong dollars then exchange rate should be 1 Canadian dollar = 4 HK dollars

Q2 option C is correct

5 instruments are

Administrative policies,

Local content requirements,

Quotas, subsidies and tariffs

Q3 option C is correct

Transnational corporation involved with the international production of goods or services, foreign investments, or income and asset management in more than one country.