1.Expectations that MNEs will conduct their business in a socially responsible manner: a. Are particularly common in developing countries b. Represent the belief that profit maximization is not the sole goal of MNEs c. Are presented in a clear set of regulations in all countries d. Are initiated by the United Nations 2.A major reason for firms to switch from export to FDI is: a. The small size of their home market b. Host country trade restrictions on imports c. International patent protection does not apply to exports d. Ease of control over their activities 3.What do government policies restricting imports and those that encourage exports share in common? a. Both distorts the principles of trade based on comparative advantage b. Both increase global inefficiencies c. Both mke artificially competitive industries d. All the above are correct 4.A major means used by multinational companies to evade taxes is: a. Setting up transfer prices that bear no relation to market prices b. Selling their products in tax havens c. Lobby their governments for permission to evade taxes d. Conducting all their business in their home countries 5.Only trade agreements by the World Trade Organization (WTO) are based on the principle of comparative advantage at the global level because these agreements: a. Help countries reach their political goals b. Reduce poverty around the world c. Help countries establish regional and bilateral trade agreements d. Are the only multilateral agreements that create equal playing level for all countries 6'What is the likely effect of the removal of quota by the EU on import of cars? a. Insider car producers will be able to sell more cars b. EU consumers would buy more cars produced by insider producers c. The competitive position of outsider car producers will improve d. The removal of the quota will not change the competitive positions of EU insiders and outsiders