In India, rural incomes are generally lower than the urban incomes, which of the following reasons account for this? I A large numbers of farmers are illiterate and know little about scientific agriculture, II Prices of primary products are lower than those of manufactured products, III Investment in agriculture has been low when compared to investment in industry

Select one:

a. II, III

b. I, II, III

c. I, III

d. I, II

In certain industries, Japanese employers hesitate to lay off workers. Therefore, they sometimes have excess supplies of goods that they cannot sell on the home market without lowering prices. To hold down losses, they sell goods in overseas markets at prices well beneath those in Japan. This practice is known as:

Select one:

a. trigger pricing

b. orderly marketing

c. dumping

d. domestic content pricing

Suppose that the world price of tin is above the target (ceiling) price that is defined by an international commodity agreement. To move the world price toward the target price, a buffer stock agreement would require its buffer stock manager to _____ tin, and an export quota agreement would require that member countries _____ their exports of tin

Select one:

a. sell; decrease

b. sell; increase

c. purchase; increase

d. purchase; decrease

As far as Asian FDI is concerned, trade-barrier- circumventing means,

Select one:

a. market and technology accessing

b. domestic investment made under the disguise of foreign investment aimed at taking advantage of fiscal benefits

c. substituting local production for the export of goods from an investing country to a receiving country

d. targeting higher rate of return and lower cost

In order to evade a higher tax burden, a multinational enterprise may engage in transfer pricing, in which the subsidiary in the high-tax country will

Select one:

a. be overpaid when selling to a less-taxed foreign branch (not sure)

b. borrow from the less-taxed branch at below-market rates

c. be charged above-market rates on loans it makes to the less-taxed branch

d. be overcharged when buying from a less-taxed foreign branch

When FDI brings positive technological externalities with it, a case can be made for

Select one:

a. the host country subsidising inward-bound FDI

b. the home country subsidising outward-bound FDI

c. both the home country and the host country taxing FDI

d. both the home country and the host country subsidising FDI