Question Details

Imperfect markets represent conditions under which factors of production are immobile



1. According to the text, a disadvantage of licensing is that:
A) It prevents a firm from importing.
B) It is difficult to ensure quality control of the production process.
C) It prevents a firm from exporting.
D) None of these.

2. _______ is most commonly classified as a direct foreign investment.
A) Foreign acquisitions
B) Purchases of international stocks
C) Licensing agreements
D) Exporting transactions

3. Imperfect markets represent conditions under which factors of production are immobile.
A) True.
B) False.

4. The Sarbanes-Oxley Act (SOX) was enacted in 2002 to require MNCs and other firms to implement an internal reporting process that could be easily monitored by executives and the board of directors.
A) True.
B) False.

5. If markets were perfect, then labor and other costs of production would be perfectly stable (no movement across borders).
A) True.
B) False.



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