Reference no: EM133101992

Problem:

Enter the letter of the definition below into the table cell of the corresponding vocabulary term.

1. The amount by which the value of imports into a nation exceeds the value of its exports.
2. A nation's relative ability to design, produce, distribute, or service products within an international trading context while earning increasing returns on its resources.
3. The establishment of new facilities from the ground up.
4. The purchase of sufficient stock in a firm to obtain significant management control.
5. A nation's ability to produce more of a good or service than another country for the same or lower cost of inputs.
6. A theory explaining why a product that began as a nation's export eventually becomes its import.
7. The purchase of stocks and bonds to obtain a return on the funds invested.
8. The existence of similar preferences and demand for products and services among nations with similar levels of per capita income.
9. Theory suggesting that strategic rivalry between firms in an oligopolistic industry will result in firms closely following and imitating each other's international investments in order to keep a competitor from gaining an advantage.
10. The purchase of an existing business in another nation.
11. The rising scale on which efficiency improves as a result of cumulative experience and learning.
12. Unique differences producers build into their products with the intent of positively influencing demand.
13. Theory that for a firm to successfully invest overseas, it must have not only ownership of unique knowledge or resources, but also the ability to dynamically create, sustain, and exploit these capabilities over time.
14. When one nation is less efficient than another nation in the production of each of two goods, the less efficient nation has a comparative advantage in the production of that good for which its absolute disadvantage is less.
15. An economic philosophy based on the belief that (1) a nation's wealth depends on accumulated treasure, usually precious metals such as gold and silver; and (2) to increase wealth, government policies should promote exports and discourage imports.
16. The amount by which the value of a nation's exports exceeds the value of its imports.
17. An industry with a limited number of competing firms.
18. Theory proposing that for a firm to invest in facilities overseas, it must have three kinds of advantages: ownership specific, location specific, and internalization.
19. Theory that foreign direct investment is made by firms in industries with relatively few competitors, due to their possession of technical and other advantages over indigenous firms.
20. The land, labor, capital, and related production factors a nation possesses.
21. Theory that to obtain a higher return on investment, a firm will transfer its superior knowledge to a foreign subsidiary that it controls, rather than sell it in the open market.
22. The price of one currency stated in terms of another.
23. A reduction in the value of a country's currency relative to other currencies.
24. A market situation in which there is a sufficiently large number of well-informed buyers and sellers of a homogeneous product, such that no individual participant has enough power to determine the price of the product, resulting in a marketplace that is efficient in production and allocation of products.
25. The predictable decline in the average cost of producing each unit of output as a production facility gets larger and output increases.