Assume That Only Two Countries, a and B, Exist

question 54

Multiple Choice

Assume that only two countries, A and B, exist.

-Refer to the table above. If good S is capital intensive, then following the Heckscher-Ohlin Theory

• A) country B will export good S.
• B) country A will export good S.
• C) both countries will export good S.
• D) trade will not occur between these two countries.
• E) both countries will import good S.

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Definitions:

Merger Incremental Cash Flow Analysis

The process of evaluating the additional cash flows a company expects to receive from a merger or acquisition.

Vertical Merger

Occurs when a company acquires another firm that is “upstream” or “downstream”; for example, an automobile manufacturer acquires a steel producer.

Petrochemical Firm

A company involved in the production of chemical products derived from petroleum and natural gas.

Oil Reserves

Quantified estimates of the amount of crude oil located in a specific economic region that can be recovered and sold under current economic and technological conditions.