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| Section | Objectives |
|---|---|
| Key Topics Across All Competencies | - Supply and Demand Shifts - Foreign Direct Investment (FDI) Impacts - Currency Appreciation and Depreciation - Elastic vs. Inelastic Goods - International Trade Policies (Tariffs, Quotas) - Global Business Strategies and Porter's Framework |
| Competency 3: Economic Decision-Making by Firms and Customers | - Consumer Behavior (Budget Constraint, Indifference Curves) - Firm Behavior Under Different Market Structures (Perfect Competition, Monopoly, Oligopoly) |
| Competency 1: International Trade and Currency Exchange | - Impact of Interest Rates on Financial Flows and Exchange Rates - Introduction to International Trade Theories - Currency Exchange Rate Determination |
| Competency 2: Political and Economic Forces | - Property Rights and the Rule of Law - Market Economy vs. Command Economy |
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質問 # 77
What is one of the OLI advantages outlined by John Dunning for why firms become multinational enterprises by engaging in foreign direct investment?
正解：A
解説：
InGlobal Economics for Managers, John Dunning'sOLI frameworkexplains why firms engage in foreign direct investment (FDI). One of its three components isinternalization advantages, making option C correct.
Internalization advantages arise when a firm finds it more efficient toconduct business activities internally rather than through market transactions such as licensing or outsourcing. By internalizing operations, firms can reduce transaction costs, protect proprietary knowledge, maintain quality control, and avoid contractual disputes.
The OLI framework consists of:
* Ownership advantages: firm-specific assets such as technology or brand reputation
* Location advantages: benefits of operating in a particular country
* Internalization advantages: gains from keeping activities within the firm When all three advantages are present, firms are more likely to pursue FDI rather than exporting or licensing.
Option D is not part of the OLI framework. Thus, option C is correct.
質問 # 78
Which GDP component is affected when a parent pays for a child's college education?
正解：C
解説：
A parent paying for a child's college education is counted in the consumption component of GDP. Option C is correct because consumption includes household spending on goods and services, including education services purchased by individuals or families. GDP is commonly divided into consumption, investment, government purchases, and net exports. Investment refers to business capital spending, inventory changes, and residential construction, not ordinary household education payments. Government purchases would apply if the government directly purchased goods or services, not when a private parent pays tuition. Net exports involve exports minus imports and are unrelated to a domestic household education payment. For managers, understanding GDP components matters because consumption is usually the largest part of GDP and reflects household demand conditions.
質問 # 79
A country has seen an increase in inflation. What is the effect on the country's currency exchange rate?
正解：B
解説：
An increase in inflation generally reduces the value of a country's currency relative to other currencies.
Higher inflation lowers purchasing power because domestic goods and services become more expensive compared with foreign alternatives. As the country's exports become less competitive and imports become relatively more attractive, demand for the domestic currency tends to fall. Under purchasing power parity logic, currencies of countries with higher inflation tend to depreciate over time. Option D is therefore correct.
Option B is incorrect because currency appreciation is more commonly associated with lower inflation, higher productivity, or higher real interest rates. Option A is too rigid because inflation is one of the major determinants of exchange-rate movement. Option C is weaker than D because the expected direction is depreciation.
質問 # 80
Which statement about the GDP deflator is true?
正解：D
質問 # 81
Which statement about consumer surplus is true?
正解：A
解説：
InGlobal Economics for Managers,consumer surplusis a key measure ofbuyer welfare, making option B correct.
Consumer surplus equals the difference between what consumers are willing to pay and what they actually pay. Policymakers often use it to assess how market outcomes or policies affect consumers.
Options A and C describe producer surplus and tax revenue. Option D refers to total surplus, not consumer surplus alone.
Thus, option B is correct.
質問 # 82
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