Question

imptsi of ig iness investment os host countries includets) skills trnsfer 44. eas about what is good, night or or desirable are called b attitudes s and customs e culture The following is/are true about the European Union a. it began b ncarly all European citizens are pleased with the EU in the 1950s as the European Coal and Steel Community c. it includes about 500 million people. d. all countries in the EU now use the euro as their currency e a and c above All ofthe following are true related to the Theory of Comparative Advantage a. was first stated by economist David Ricardo. b. 46 maintains that a country should specialize in a good it produces most efficiently, even if other countries are more efficient in all products. p ces most eficienty c. d. e. was an extension of mercantilism shows how countries can be better off if they follow the advice in b. has been the basis of U.S. trade policy The Human Development Index is based on educational attainment, life expectancy and: a. ability of a person with average income to meet basic needs. b. per capita average income. 47. : c. GNP d. CPI e. inflation rate. 48. Political risk can be managed by: a. information gathering. b. adapting by entering into joint ventures or strategic alliances. c. using political influence such as hiring lobbyists in the home and host country d. all of the above. e. only (a) and (b) above. 6

Answer 1

43.

C

FDI can cause economic slavery and economic independence can be lost.

44.

A

These are collectively considered as values.

45.

D

Euro is the common currency in European Union countries.

46.

B

Comparative advantage focuses upon lower opportunity cost , rather on product of highest efficiency.

47.

B

per capita income is also considered to measure HDI.

48.

D

A good research of the economic and political scenarios as well as forming joint ventures bring more adaptability to the conditions. Besides, working on the lobbyist, will also help in managing he political risk.