Reference no: EM132177705

1. HIV/AIDS is affecting the operations of Anglo American PLC ____________.

a. for workers in South Africa but nowhere else in the world

b. in a relatively insignificant way since Anglo Americans will not hire workers infected with HIV/AIDS

c. by forcing the company to invest outside of South Africa to avoid having to deal with the health issues

d. through health care and related costs

2. Countries with large land areas are generally less dependent on trade than countries with small land areas. One of the factors causing this difference is that large countries ____________.

a. are self-sufficient in natural resources

b. have more restricted economies

c. generally have less of their production and markets near their borders, thus incurring higher transportation costs for foreign trade

3. Tests to substantiate the factor proportions theory have had mixed results. One of the reasons is that ____________.

a. most countries try to have a favorable balance of trade

b. the theory assumes homogeneous factors of production, such as labor, but they are not

c. labor migration quickly outdates any studies

d. large and small countries have different propensities to trade

e. are more likely to develop unique products for which there is little demand elsewhere

4. In the closing case, LUKoil has been making many investments abroad. Which of the following is NOT one of its motives for making these investments?

a. The Russian government ownership of the export pipeline looms as a risk for LUKoil to be able to export a sufficient amount of crude.

b. The acquisitions may lower LUKoil’s cost by not having to negotiate and enforce contracts with an independent company.

c. Foreign reserves are necessary because of insufficient domestic reserves to satisfy the needs of its home market.

d. It is a means of gaining experienced personnel and technical knowledge.

5. Terms of trade refers to ____________.

a. a statement of accounts showing the sum of imports and exports for a country during a specified period of time, usually one year

b. specific requirements placed on imports at the port of entry

c. terms agreed upon by two countries to regulate bilateral trade between them

d. the quantity of imports that a given quantity of a country’s exports can buy