8 Economies of scale location of production

Supply Chain Management, 5e (Chopra/Meindl)Chapter 5 Network Design in the Supply Chain5.1 True/False Questions1) Supply chain network design decisions include the location of manufacturing, storage, or transportation-related facilities and the allocation of capacity and roles to each facility. Answer: TRUEDiff: 2Topic: 5.1 The Role of Network Design in the Supply ChainAACSB: Analytic SkillsLearning Outcome: Compare common approaches to supply chain design2) Decisions concerning the role of each facility are significant because they determine the amount of rigidity the supply chain has in changing the way it meets demand.Answer: FALSEDiff: 2Topic: 5.1 The Role of Network Design in the Supply ChainAACSB: Analytic SkillsLearning Outcome: Compare common approaches to supply chain design3) Facility location decisions have a long-term impact on a supply chain's performance because it is cost effective to shut down a facility or move it to a different location.Answer: FALSEDiff: 1Topic: 5.1 The Role of Network Design in the Supply ChainAACSB: Analytic SkillsLearning Outcome: Compare common approaches to supply chain design4) Capacity allocation decisions have a significant impact on supply chain performance because they tend to stay in place for several years.Answer: TRUEDiff: 2Topic: 5.1 The Role of Network Design in the Supply ChainAACSB: Analytic SkillsLearning Outcome: Compare common approaches to supply chain design5) The allocation of supply sources and markets to facilities has a significant impact on performance because it affects total production, inventory, and transportation costs incurred by the supply chain to satisfy customer demand.Answer: TRUEDiff: 1Topic: 5.1 The Role of Network Design in the Supply ChainLearning Outcome: Compare common approaches to supply chain design6) The allocation of supply sources and markets to facilities does not need to be reconsidered ona regular basis so that the allocation can be changed as market conditions or plant capacities change.Answer: TRUEDiff: 2Topic: 5.1 The Role of Network Design in the Supply ChainLearning Outcome: Compare common approaches to supply chain design7) Network design decisions have a significant impact on performance because they determine the supply chain configuration and set constraints within which inventory, transportation, and information can be used to either decrease supply chain cost or increase responsiveness. Answer: TRUEDiff: 2Topic: 5.1 The Role of Network Design in the Supply ChainLearning Outcome: Compare common approaches to supply chain design8) Firms focusing on cost leadership tend to find the lowest cost location for their manufacturing facilities, but only if that means locating very far from the markets they serve.Answer: FALSEDiff: 1Topic: 5.2 Factors Influencing Network Design DecisionsLearning Outcome: Compare common approaches to supply chain design9) If production technology displays significant economies of scale, many local locations are the most effective.Answer: FALSEDiff: 2Topic: 5.2 Factors Influencing Network Design DecisionsLearning Outcome: Compare common approaches to supply chain design10) If facilities have lower fixed costs, many local facilities are preferred because this helps lower transportation costs.Answer: TRUEDiff: 2Topic: 5.2 Factors Influencing Network Design DecisionsLearning Outcome: Compare common approaches to supply chain design11) If the production technology is very inflexible and product requirements vary from one country to another, a firm has to set up local facilities to serve the market in each country. Answer: TRUEDiff: 3Topic: 5.2 Factors Influencing Network Design DecisionsLearning Outcome: Compare common approaches to supply chain design12) If the technology is flexible, it becomes more difficult to consolidate manufacturing in a few large facilities.Answer: FALSEDiff: 3Topic: 5.2 Factors Influencing Network Design DecisionsLearning Outcome: Compare common approaches to supply chain design13) Tariffs have a minor influence on location decisions within a supply chain.Answer: FALSEDiff: 2Topic: 5.2 Factors Influencing Network Design DecisionsLearning Outcome: Compare common approaches to supply chain design14) High tariffs lead to more production locations within a supply chain network, with each location having a lower allocated capacity.Answer: TRUEDiff: 3Topic: 5.2 Factors Influencing Network Design DecisionsLearning Outcome: Compare common approaches to supply chain design15) When designing supply chain networks, companies must build appropriate flexibility to help counter fluctuations in exchange rates and demand across different countries.Answer: TRUEDiff: 2Topic: 5.2 Factors Influencing Network Design DecisionsLearning Outcome: Compare common approaches to supply chain design16) Inventory and facility costs increase as the number of facilities in a supply chain increase. Answer: TRUEDiff: 2Topic: 5.2 Factors Influencing Network Design DecisionsLearning Outcome: Compare common approaches to supply chain design17) Transportation costs increase as the number of facilities is increased.Answer: FALSEDiff: 2Topic: 5.2 Factors Influencing Network Design DecisionsLearning Outcome: Compare common approaches to supply chain design18) A firm may increase the number of facilities beyond the point that minimizes total logistics cost to improve the response time to its customers.Answer: TRUEDiff: 1Topic: 5.2 Factors Influencing Network Design DecisionsLearning Outcome: Compare common approaches to supply chain design19) When faced with a network design decision, the goal of a manager is to design a network that minimizes the firm's costs while satisfying customer needs in terms of demand and responsiveness.Answer: FALSEDiff: 3Topic: 5.3 Framework for Network Design DecisionsLearning Outcome: Compare common approaches to supply chain design20) The supply chain network is designed to maximize total profits, taking into account the expected margin and demand in each market, various logistics and facility costs, and the taxes and tariffs at each location.Answer: TRUEDiff: 1Topic: 5.3 Framework for Network Design DecisionsLearning Outcome: Compare common approaches to supply chain design21) Decisions concerning the role of each facility are significant because they determine the amount of flexibility the supply chain has in changing the way it meets demand.Answer: TRUEDiff: 1Topic: 5.1 The Role of Network Design in the Supply ChainAACSB: Analytic SkillsLearning Outcome: Compare common approaches to supply chain design22) Network design decisions have a significant impact on performance because they determine the supply chain configuration and set constraints within which the other supply chain drivers can be used either to decrease supply chain cost or to increase responsiveness.Answer: TRUEDiff: 1Topic: 5.1 The Role of Network Design in the Supply ChainAACSB: Analytic SkillsLearning Outcome: Compare common approaches to supply chain design23) If facilities have higher fixed costs, many local facilities are preferred because this helps lower transportation costs.Answer: FALSEDiff: 1Topic: 5.2 Factors Influencing Network Design DecisionsAACSB: Analytic SkillsLearning Outcome: Compare common approaches to supply chain design5.2 Multiple Choice Questions1) Supply chain network design decisions includeA) only the location of manufacturing, storage, or transportation-related facilities.B) only the allocation of capacity and roles to each facility.C) both the location of manufacturing, storage, or transportation-related facilities and the allocation of capacity and roles to each facility.D) neither the location of manufacturing, storage, or transportation-related facilities nor the allocation of capacity and roles to each facility.E) none of the aboveAnswer: CDiff: 1Topic: 5.1 The Role of Network Design in the Supply ChainLearning Outcome: Compare common approaches to supply chain design2) Supply chain network design decisions classified as facility role are concerned withA) what processes are performed at each facility.B) where facilities should be located.C) how much capacity should be allocated to each facility.D) what markets each facility should serve and which supply sources should feed each facility.E) none of the aboveAnswer: ADiff: 2Topic: 5.1 The Role of Network Design in the Supply ChainLearning Outcome: Compare common approaches to supply chain design3) Supply chain network design decisions classified as facility location are concerned withA) what processes are performed at each facility.B) where facilities should be located.C) how much capacity should be allocated to each facility.D) what markets each facility should serve and which supply sources should feed each facility.E) none of the aboveAnswer: BDiff: 1Topic: 5.1 The Role of Network Design in the Supply ChainLearning Outcome: Compare common approaches to supply chain design4) Supply chain network design decisions classified as capacity allocation are concerned withA) what processes are performed at each facility.B) where facilities should be located.C) how much capacity should be allocated to each facility.D) what markets each facility should serve and which supply sources should feed each facility.E) none of the aboveAnswer: CDiff: 1Topic: 5.1 The Role of Network Design in the Supply Chain5) Supply chain network design decisions classified as market and supply allocation are concerned withA) what processes are performed at each facility.B) where facilities should be located.C) how much capacity should be allocated to each facility.D) what markets each facility should serve and which supply sources should feed each facility.E) none of the aboveAnswer: DDiff: 1Topic: 5.1 The Role of Network Design in the Supply ChainLearning Outcome: Compare common approaches to supply chain design6) Decisions concerning the role of each facility are significant becauseA) they determine the amount of flexibility the supply chain has in demanding change.B) they determine the amount of flexibility the supply chain has in changing the way it meets demand.C) they determine the amount of capacity the supply chain has in changing the way it meets demand.D) they determine the amount of inventory the supply chain has in demanding change.E) None of the above are true.Answer: BDiff: 2Topic: 5.1 The Role of Network Design in the Supply ChainLearning Outcome: Compare common approaches to supply chain design7) Facility location decisions have a long-term impact on a supply chain's performance becauseA) it is very expensive to shut down a facility or move it to a different location.B) it is not expensive to shut down a facility or move it to a different location.C) it is advisable to shut down a facility or move it to a different location.D) it is cost effective to shut down a facility or move it to a different location.E) none of the aboveAnswer: ADiff: 2Topic: 5.1 The Role of Network Design in the Supply ChainLearning Outcome: Compare common approaches to supply chain design8) Capacity allocation decisions have a significant impact on supply chain performance becauseA) capacity decisions tend to be permanent.B) capacity decisions tend to be changed frequently.C) capacity decisions do not tend to stay in place for several years.D) capacity decisions tend to stay in place for several years.E) none of the aboveAnswer: DDiff: 2Topic: 5.1 The Role of Network Design in the Supply ChainLearning Outcome: Compare common approaches to supply chain design9) Allocating too much capacity to a location results inA) permanent damage.B) poor utilization, and as a result, higher costs.C) high utilization, and as a result, higher costs.D) poor utilization, and as a result, lower costs.E) high utilization, and as a result, lower costs.Answer: BDiff: 2Topic: 5.1 The Role of Network Design in the Supply ChainLearning Outcome: Compare common approaches to supply chain design10) Allocating too little capacity results inA) temporary damage.B) good responsiveness if demand is not satisfied or low cost if demand is filled from a distant facility.C) good responsiveness if demand is not satisfied or high cost if demand is filled from a distant facility.D) poor responsiveness if demand is not satisfied or low cost if demand is filled from a distant facility.E) poor responsiveness if demand is not satisfied or high cost if demand is filled from a distant facility.Answer: EDiff: 2Topic: 5.1 The Role of Network Design in the Supply ChainLearning Outcome: Compare common approaches to supply chain design11) The allocation of supply sources and markets to facilities has a significant impact on performance becauseA) it cannot affect total production, inventory, and transportation costs incurred by the supply chain to satisfy customer demand.B) it cannot affect customer demand.C) it affects total production, inventory, and transportation costs incurred by the supply chain to satisfy customer demand.D) it cannot satisfy customer demand.E) none of the aboveAnswer: CDiff: 2Topic: 5.1 The Role of Network Design in the Supply ChainLearning Outcome: Compare common approaches to supply chain design12) The allocation of supply sources and markets to facilities should be reconsidered on a regular basis so thatA) the allocation can be held constant as market conditions or plant capacities expand.B) the allocation can be changed as market conditions or plant capacities stagnate.C) the allocation can be held constant as market conditions or plant capacities change.D) the allocation can be changed as market conditions or plant capacities change.E) none of the aboveAnswer: DDiff: 2Topic: 5.1 The Role of Network Design in the Supply ChainLearning Outcome: Compare common approaches to supply chain design13) Network design decisions have a significant impact on performance because theyA) determine the supply chain configuration.B) determine the supply chain conflagration.C) set constraints within which inventory, transportation, and information can be used to either decrease supply chain cost or increase responsiveness.D) set constraints within which inventory, transportation, and information can be used to either increase supply chain cost or decrease responsiveness.E) A and C onlyAnswer: EDiff: 3Topic: 5.1 The Role of Network Design in the Supply Chain14) Customer order entry isA) the point in time when the customer has access to choices and makes a decision regarding a purchase.B) the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer.C) the process where product is prepared and sent to the customer.D) the process where the customer receives the product and takes ownership.E) none of the aboveAnswer: BDiff: 2Topic: 5.1 The Role of Network Design in the Supply ChainLearning Outcome: Compare common approaches to supply chain design15) Which of the following is not a factor influencing network design decisions in supply chains?A) Strategic factorsB) Tactical factorsC) Macroeconomic factorsD) Political factorsE) Infrastructure factorsAnswer: BDiff: 2Topic: 5.1 The Role of Network Design in the Supply Chain16) Firms focusing on cost leadership tend toA) locate facilities close to the market they serve.B) locate facilities very far from the market they serve.C) find the lowest cost location for their manufacturing facilities.D) select a high-cost location to be able to react quickly.E) none of the aboveAnswer: CDiff: 2Topic: 5.2 Factors Influencing Network Design DecisionsLearning Outcome: Compare common approaches to supply chain design17) Firms focusing on responsiveness tend toA) locate facilities close to the market they serve.B) locate facilities very far from the market they serve.C) find the lowest cost location for their manufacturing facilities.D) select a high-cost location to be able to react slowly.E) none of the aboveAnswer: ADiff: 2Topic: 5.2 Factors Influencing Network Design DecisionsLearning Outcome: Compare common approaches to supply chain design18) Which of the following is not one of Kasra Ferdows' classifications of possible strategic roles for various facilities in a global supply chain network?A) Offpost facilityB) Source facilityC) Server facilityD) Contributor facilityE) Outpost facilityAnswer: ADiff: 2Topic: 5.2 Factors Influencing Network Design Decisions19) A facility that serves the role of being a low-cost supply source for markets located outside the country where the facility is located isA) an offshore facility.B) a source facility.C) a server facility.D) a contributor facility.E) an outpost facility.Answer: ADiff: 2Topic: 5.2 Factors Influencing Network Design Decisions20) A facility that also has low cost as its primary objective, but its strategic role is broader than that of an offshore facility isA) an offshore facility.B) a source facility.C) a server facility.D) a contributor facility.E) an outpost facility.Answer: BDiff: 2Topic: 5.2 Factors Influencing Network Design Decisions21) A facility built because of tax incentives, local content requirement, tariff barriers, or high logistics cost to supply the region from elsewhere with the objective to supply the market where it is located isA) an offshore facility.B) a source facility.C) a server facility.D) a contributor facility.E) an outpost facility.Answer: CDiff: 2Topic: 5.2 Factors Influencing Network Design DecisionsLearning Outcome: Compare common approaches to supply chain design22) A facility located primarily to obtain access to knowledge or skills that may exist within a certain region isA) an offshore facility.B) a source facility.C) a server facility.D) a contributor facility.E) an outpost facility.Answer: EDiff: 2Topic: 5.2 Factors Influencing Network Design DecisionsLearning Outcome: Compare common approaches to supply chain design23) A facility that serves the market where it is located but also assumes responsibility for product customization, process improvements, product modifications, or product development isA) an offshore facility.B) a source facility.C) a server facility.D) a contributor facility.E) an outpost facility.Answer: DDiff: 2Topic: 5.2 Factors Influencing Network Design Decisions24) A facility that creates new products, processes, and technologies for the entire network isA) an offshore facility.B) a source facility.C) a server facility.D) a lead facility.E) an outpost facility.Answer: DDiff: 2Topic: 5.2 Factors Influencing Network Design Decisions25) Production technology displays significant economies of scale,A) many high-capacity locations are the most effective.B) few high-capacity locations are the most effective.C) few high-capacity locations are the least effective.D) few low-capacity locations are the most effective.E) few low-capacity locations are the least effective.Answer: BDiff: 2Topic: 5.2 Factors Influencing Network Design Decisions26) If facilities have lower fixed costs,A) a few high-capacity facilities are preferred because this helps lower transportation costs.B) a few local facilities are preferred because this helps lower transportation costs.C) many high-capacity facilities are preferred because this helps lower transportation costs.D) many local facilities are preferred because this helps lower transportation costs.E) one central facility is preferred because this helps lower transportation costs.Answer: DDiff: 2Topic: 5.2 Factors Influencing Network Design Decisions27) If the production technology is very inflexible and product requirements vary from one country to another, a firm has to set upA) local facilities to serve the market in each country.B) a few high-capacity facilities to serve the market in each country.C) many local facilities because this helps lower transportation costs.D) a few high-capacity facilities because this helps lower transportation costs.E) many high-capacity facilities because this helps lower transportation costs.Answer: ADiff: 3Topic: 5.2 Factors Influencing Network Design Decisions28) If the technology is flexible,A) it becomes more difficult to consolidate manufacturing in a few large facilities.B) it becomes more difficult to distribute manufacturing in many local facilities.C) it becomes easier to consolidate manufacturing in a few large facilities.D) it becomes easier to consolidate manufacturing in many local facilities.E) the firm should have one central facility.Answer: CDiff: 3Topic: 5.2 Factors Influencing Network Design DecisionsLearning Outcome: Compare common approaches to supply chain design29) Duties that must be paid when products and/or equipment are moved across international, state, or city boundaries are referred to asA) taxes.B) tax incentives.C) tariffs.D) incentives.E) none of the aboveAnswer: CDiff: 2Topic: 5.2 Factors Influencing Network Design DecisionsLearning Outcome: Compare common approaches to supply chain design30) If a country has very high tariffs,A) companies either do not serve the local market or set up manufacturing plants within the country to save on duties.B) companies do not serve the local market.C) companies set up manufacturing plants within the country to save on duties.D) companies will not serve the local market or set up manufacturing plants within the country to save on duties.E) companies will serve the local market by setting up regional manufacturing plants. Answer: ADiff: 2Topic: 5.2 Factors Influencing Network Design Decisions31) Developing countries often create free trade zones whereA) duties and tariffs are imposed as long as production is used primarily for export.B) duties and tariffs are imposed as long as production is used primarily for import.C) duties and tariffs are relaxed as long as production is used primarily for export.D) duties and tariffs are relaxed as long as production is used primarily for import.E) duties and tariffs are increased as long as production is used primarily for export.Answer: CDiff: 1Topic: 5.2 Factors Influencing Network Design Decisions32) Building some over-capacity in the supply chain network and making the capacity flexible allows a firm to alter production flows within the supply chain toA) produce less in facilities that have a lower cost based on current exchange rates.B) produce more in facilities that have a lower cost based on current exchange rates.C) produce more in facilities that have a higher cost based on current exchange rates.D) produce less in facilities that have the same cost based on current exchange rates.E) None of the above are accurate.Answer: BDiff: 2Topic: 5.2 Factors Influencing Network Design Decisions33) Total logistics costs are a sum of theA) inventory and facility costs.B) transportation and facility costs.C) inventory and transportation costs.D) inventory, transportation, and facility costs.E) inventory, transportation, and faculty costs.Answer: DDiff: 2Topic: 5.2 Factors Influencing Network Design Decisions34) The facilities in a supply chain network mustA) at least maximize total logistics cost.B) at least equal the number that maximizes total logistics cost.C) at least equal the number that minimizes total logistics cost.D) at least minimize total logistics cost.E) none of the aboveAnswer: CDiff: 1Topic: 5.2 Factors Influencing Network Design Decisions35) When faced with a network design decision, the goal of a manager is to design a network thatA) maximizes the firm's profits.B) minimizes the firm's costs.C) satisfies customer needs in terms of demand and responsiveness.D) maximizes the firm's profits while satisfying customer needs in terms of demand and responsiveness.E) none of the aboveAnswer: DDiff: 2Topic: 5.3 Framework for Network Design Decisions36) Which of the following is not a phase in the design of a global supply chain network?A) Define a supply chain strategyB) Define the regional facility configurationC) Select desirable sitesD) Location choicesE) Implement supply chain strategyAnswer: EDiff: 2Topic: 5.3 Framework for Network Design DecisionsLearning Outcome: Compare common approaches to supply chain design37) Which of the following is the first phase in the design of a global supply chain network?A) Define a supply chain strategyB) Define the regional facility configurationC) Select desirable sitesD) Location choicesE) Implement supply chain strategyAnswer: ADiff: 2Topic: 5.3 Framework for Network Design Decisions38) The objective of the first phase of network design is toA) maximize total profits, taking into account the expected margin and demand in each market.B) select a precise location and capacity allocation for each facility.C) select a set of desirable sites within each region where facilities are to be located.D) identify regions where facilities will be located, their potential roles, and their approximate capacity.E) specify what capabilities the supply chain network must have to support a firm's competitive strategy.Answer: EDiff: 3Topic: 5.3 Framework for Network Design Decisions39) The objective of the second phase of network design is toA) maximize total profits, taking into account the expected margin and demand in each market.B) select a precise location and capacity allocation for each facility.C) select a set of desirable sites within each region where facilities are to be located.D) identify regions where facilities will be located, their potential roles, and their approximate capacity.E) specify what capabilities the supply chain network must have to support a firm's competitive strategy.Answer: DDiff: 3Topic: 5.3 Framework for Network Design Decisions40) The objective of the third phase of network design is toA) maximize total profits, taking into account the expected margin and demand in each market.B) select a precise location and capacity allocation for each facility.C) select a set of desirable sites within each region where facilities are to be located.D) identify regions where facilities will be located, their potential roles, and their approximate capacity.E) specify what capabilities the supply chain network must have to support a firm's competitive strategy.Answer: CDiff: 3Topic: 5.3 Framework for Network Design Decisions41) It is very important that long-term consequences be thought through when making facility decisions, becauseA) network designers can use this fact to influence the role of the new facility and the focus of people working there.B) facilities last a long time and have an enduring impact on a firm's performance.C) it is astounding how often tax incentives drive the choice of location.D) the location of a facility has a significant impact on the extent and form of communication that develops in the supply chain network.E) the quality of life at selected facility locations has a significant impact on performance. Answer: BDiff: 3Topic: 5.3 Framework for Network Design Decisions42) The implications of culture should not be glossed over becauseA) tariffs and tax incentives should be carefully considered.B) facilities last a long time and have an enduring impact on a firm's performance.C) it is astounding how often tax incentives drive the choice of location.D) the location of a facility has a significant impact on the extent and form of communication that develops in the supply chain network.E) the quality of life at selected facility locations has a significant impact on performance. Answer: ADiff: 3Topic: 5.5 Making Network Design Decisions in Practice。

In last section, We neglect price discrimination (such as dumping) in the imperfect competitive model which give rise international trade.2Clips: 中国鞋如何迎战反倾销连环箭3一、Dumping(倾销)1.The Economics of DumpingIn reality, firms do not charge the same price for goods that are exported and solddomestically, it is the price discrimination.1)Price discrimination: The practice of chargingdifferent customers different prices.Dumping is the most common form of price discrimination in international trade.42)Definition of DumpingIt is a pricing practice in which a firm chargesa lower price for an exported good than itdoes for the same good sold domesticallyIt is a controversial issue in trade policy and is widely regarded as an unfair practice ininternational trade.53)Dumping can occur only if two conditions aremet:First, the industry must be Imperfectly competitive industry, so that firms set prices rather than taking prices as given.Second, market must be segmented, so that domestic residents cannot easily purchasegoods intended for export(transport costs and protectionist trade barriers).62.A monopolistic firm gets profits by dumping An example below help to show dumping can be a profit-maximizing strategy by Figure 6-8. To maximize profits, the firm must set marginal revenue equal to marginal cost ineach market.We assume that the firm can sell as much as it wants at the Pin the foreign market.FOR7The firm sell Qin the domestic market andDOMsell Q MONOPOLY- Q DOM in the foreign market .will be demanded domestically The quantity QDOMat price of P, which is above the export priceDOMP FOR . Thus the firm is indeed dumping, sellingmore cheaply abroad than at Home.9The reason the firm chooses to dump is the difference in the responsiveness of sales toprice in the export and domestic markets(P143).103.Reciprocal Dumping1)Reciprocal Dumping is a situation in whichdumping leads to two-way trade in the same product.The reason is that if it tries to sell more it will drive down the price on its existing domestic sales. But dumping has the negative effect on the price of existing sales in the foreign sales.112)It increases the volume of trade in goods thatare not quite identical.3)Its net welfare effect is ambiguous:It wastes resources in transportation.It creates some competition.12Case studyThe dumping cases against China in 2005.13世贸组织的一项报告显示，2005年上半年全球实施反倾销调查数量为96起，去年同期为106起；申请反倾销措施的数量为53起，去年同期为58起。

1、Absolute trade theory(main idea)绝对贸易理论:the greater efficiency that one nation may have over another in the production of a commodity. conclusion: Both countries have absolute advantage in one commodity’s production because the natural or acquired advantage. If each nation specializes in the production of the commodity of its absolute advantage and exchanges part of its output for the commodity of its absolute disadvantage, both nations benefit from the trade.2、▲Absorption approach：一、Overview of The Absorption Approach:1)The absorption approach was put forward by Alexander in 1952.2)This approach emphasizes changes in real domestic income and absorption as adeterminant of a nation’s balance of payments.3)The balance of trade is viewed as the difference between what the economyproduces and what it absorbs for domestic use.二、Absorption :1） A nation’s absorption falls into three categories, consumption (c), investment (i), government purchase (g).2） The domestic absorption (a)a 符号：“比等号再多一道” c + i + g1、▲Balance of payments equilibrium and adjustment：Balance of payments equilibrium is a state that the debits equals to the credits in the autonomous transactions. This would simply mean that their stocks of international reserves are unchanging.2、▲Balance of payments equilibrium and disequilibrium：（一）Balance of payments equilibrium: is a state that the debits equals to the credits in the autonomous transactions. This would simply mean that their stocks of international reserves are unchanging.（二）Disequilibrium in balance of payments：1) Deficit in the balance of payments: the excess of debits over credits in the autonomous transactions. Deficit countries will experience reserve asset losses. 2) Surplus in the balance of payments: the excess of credits over debits in the autonomous transactions. surplus countries will experience reserve asset accumulation.3、▲Basic theories of the balance of payments:1) The Elasticity Approach to Balance-of-Payments2) The absorption approach to the balance of payments3) The monetary approach to the balance of payments1、Comparative trade theory比较贸易理论:(main points)A country has a comparative advantage in producing a goods if the opportunity cost of producing that goods in terms of other goods is lower in that country than it is in other countries. basic ideas: Even if a nation has an absolute disadvantage in the production of both goods, a basis for mutually beneficial trade may still exist.In this case, countries should specialize where they have their greatest absolute advantage (if they have absolute advantage in both goods) or in their least absolute disadvantage (if they have absolute advantage in neither goods). (两利相权取其重，两害相权取其轻）2、Competitive advantage of nations：美国 20C80、90年代迈克尔-波特认为：具有比较优势的国家未必具有竞争优势。

A Level Model A nswer: Theory of the FirmIn production, a distinction is made between short-run cost curves and long-run cost curves. Using appropriate cost curve diagrams, explain this distinction. (12 marks) The costs that a firm incurs can be separated into fixed costs and variable costs, which together make up a firm’s total costs. Fixed costs remain constant regardless of quantity output – for example, the rent paid on a factory used when producing a good. Variable costs change as output increases or decreases. An example is the wage cost of labour. To produce more output, the firm hires more labour, and has increased wage costs. The more variable inputs a firm uses, the greater the total variable costs.In microeconomics, the ‘short-run’ refers to the period of time in which at least one factor of production (usually land, labour and/or capital) is fixed. For example, the time it takes for a contract with a property owner to end before the firm can move to a different location.Figure 1 Short-run cost curvesIn Figure 1, the AFC curve indicates that average fixed cost falls continuously as output increases, because it represents the amount of total fixed costs divided by an ever growing quantity of output. The average variable cost, average total cost and marginal cost curves,although different from one other, all follow the same general pattern: at first they fall, reach a minimum, and then they begin to rise.Marginal cost rises with the amount of output produced, reflecting the property of diminishing marginal product – as units of one input are added (with other inputs held constant) a point will be reached where the resulting additions to output will begin to decrease (marginal product will decline). Consider the limited size of the factory discussed earlier – we can keep adding more and more variable inputs (such as labour) but, constrained by the limited space, we will eventually see no further increases in output and output may even start to fall due to overcrowding of the fixed factor(s). Thus the cost of producing an additional cost continues to rise even though the firm may be gaining no benefit in terms of increased output.In the ‘long-run’, all factors of production become variable – in the example given, the firm can move to a bigger or less expensive factory. Because many costs are fixed in the short run but variable in the long run, a firm’s long-run cost curves differ from its short-run cost curves. As the firm plans its future activities in the long run, it can select any size or scale of operation depending on the quantity of output it is aiming for. The particular size it selects will be the one that minimises costs for that level of output. The long-run average total curve is the curve that is tangent to each of the short-run cost curves. Long run average total costs represent the lowest possible average cost, or cost per unit of output, for every level of output, when all resources are variable.Figure 2 Long-run average total cost curvesThe U-shape of the long-run ATC curve is a result of economies and diseconomies of scale.Economies of scale refer to the benefits in terms of falling average total cost gained from large scale production, occurring for a number of reasons. Firstly, as the scale of productionincreases, more workers must be employed, allowing for greater labour specialisation. Aseach worker specialises in a narrower range of tasks that make use of existing skills, anddevelop skills through repetition, worker efficiency is increased, allowing output to beproduced at a lower average cost.Larger scales of production allow for more managers to be employed, each of whom can bespecialised in a particular area, again resulting in greater efficiency and lower average cost. Large machines are often more efficient than smaller ones. However, a small firm with a small volume of output cannot make effective use of large machines, and so is forced to use smaller, less efficient ones. Some machines are only available in large sizes that require large volumes of output in order to be used effectively. Some production processes, such as mass production assembly lines, require large volumes of inputs and output in order to be used efficiently. Costs of certain activities such as advertising, design, research and development result in lower average costs if they can be spread over large volumes of output.However, as a firm increases its scale of production, costs per unit of output may eventually start to increase. As a firm grows, management faces co-ordination difficulties. Communication and decision-making will be slower. Staff may feel alienated in a large organisation and unless they are monitored effectively, the quality and output of their work may decline.Evaluate the view that productive and allocative efficiency is more likely to be achieved in perfectly competitive industries than monopolies. [13 marks]Productive efficiency occurs when production takes place at the lowest possible cost. Allocative efficiency occurs when firms produce the particular combination of goods and services that consumers prefer. It is achieved when price equals marginal cost. This is because the price paid by consumers to acquire a good reflects the marginal benefit they derive from consumption of an additional of the good and shows the amount of money they are willing to pay to buy one more unit.Marginal cost measures the value, or opportunity cost, of the resources used to produce one extra unit of the good. When price is equal to marginal cost, therefore, what consumers are prepared to pay to get one more unit and what it costs to produce one more unit are equal.Figure 3 Long-run equilibrium position of a firm in a perfectly competitive industry.Figure 3 shows the firm in a competitive industry earns zero economic profit in the long-run.Thus, the perfectly competitive firm achieves both allocative and productive efficiency. As the competitive firm must accept the market price, price equals average revenue andmarginal revenue and the supply curve facing the firm is perfectly elastic at the market price.The profit-maximising level of output is set where price (marginal revenue) equals marginalcost (allocative efficiency is achieved) and average total cost is minimised (productiveefficiency is achieved).The monopolist, as the only supplier in the market, can restrict supply and charge a higher price to consumers to maximise profit (see Figure 4).Figure 4 Monopoly price, output and profitHigher prices and lower output are not in consumers’ best interests. The area BCD represents this welfare loss, indicating there is allocative inefficiency. Some monopolists achieve productive efficiency because they may output where average total cost is minimised (although this is not always the case). ‘Natural’ monopolies exist when an industry can only support one firm producing at efficient scale – for example, utility companies such as tap water providers.Lack of competition in monopoly may lead to higher costs (‘X-inefficiency’). Whereas in perfect competition firms are under constant pressure to produce with the lowest possiblecosts to survive, in monopoly the lack of competition may make the monopolist lessconcerned about keeping costs low. Higher costs may arise due a poorly motivatedworkforce and lack of innovation due to lack of competitive pressure.Nevertheless, monopolies can be desirable from the perspective of consumers and society.Why a monopoly may be desirable. Monopolists’ economic profits can provide them with theability to finance large research and development projects. In fact, this is the rationale forawarding firms patent protection for a period of time.Economies of scale are an argument in favour of large firms that can achieve lower costs asthey grow in size. If monopolists pursue research and development that leads totechnological innovation, they may adopt production processes and technologies that make them more efficient and thus able to produce at a lower cost, which could be passed toconsumers in the form of lower prices. Therefore, it remains disputable that perfectlycompetitive firms are always more likely to achieve allocative and productive efficiency thanmonopolists.。

经济学专业术语（中英文对照）目录1. 经济学原理 (2)2. 像经济学家一样思考 (2)3. 相互依存性与贸易的好处 (3)4. 供给与需求的市场力量 (3)5. 弹性及其应用 (4)6. 供给需求与政策 (4)7. 消费者、生产者与市场效率 (4)8. 赋税的应用 (4)9. 国际贸易 (5)10. 外部性 (5)11. 公共物品和公共资源 (5)12. 税制设计 (5)13. 生产成本 (6)14. 竞争市场上的企业 (7)15. 垄断 (7)16. 垄断竞争 (7)17. 寡头 (7)18. 生产要素市场 (8)19. 收入与歧视 (8)20. 收入不平等与贫困 (8)21. 消费者选择理论 (9)22. 微观经济学前沿 (9)23. 一国收入的衡量 (10)24. 生活费用的衡量 (10)25. 生产与增长 (10)26. 储蓄、投资和金融体系 (11)27. 金融学的基本工具 (11)28. 失业 (12)29. 货币制度 (12)30. 货币增长与通货膨胀 (13)31. 开放经济的宏观经济学 (14)32. 开放经济的宏观经济理论 (14)33. 总需求与总供给 (14)34. 货币政策和财政政策对总需求影响 (15)35. 通胀与失业之间的短期权衡取舍 (15)1.经济学原理经济:(economy)稀缺性:(scarcity)经济学:(economics)效率:(efficiency)平等:(equality)机会成本:(opporyunity cost)理性人:(rational people)边际变动:(marginal change)边际收益:(marginal benefit)边际成本:(marginal cost)激励:(incentive)市场经济:(market economy)产权:(property rights)市场失灵:(market failure)外部性:(externality)市场势力:(market power)生产率:(productivity)通货膨胀:(inflation)经济周期:(business cycle)2.像经济学家一样思考循环流量图:(circular-flow diagram)生产可能性边界:(production possibilities)微观经济学:(microeconomics)宏观经济学:(macroeconomics)实证表述:(positive statements)规范表述:(normative statements)有序数对:(ordered pair)3.相互依存性与贸易的好处绝对优势:(absolute advantage)机会成本:(apportunity cost)比较优势:(comparative advantage)进口品:(imports)出口品:(exports)4.供给与需求的市场力量市场:(market)竞争市场:(competitive market)需求量:(quantity demand)需求定理:(law of demand)需求表:(demand schedule)需求曲线:(demand curve)正常物品:(normal good)低档物品:(inferior good)替代品:(substitutes)互补品:(complements)供给量:(quantity supplied)供给定理:(law of supply)供给表:(supply schedule)供给曲线:(supply curve)均衡:(equilibrium)均衡价格:(equilibrium price)均衡数量:(equilibrium quantity)过剩:(surplus)短缺:(shortage)供求定理:(law of supply and demand)5.弹性及其应用弹性:(elasticity)需求价格弹性:(price elasticity of demand)总收益:(total revenue)需求收入弹性:(income elasticity)需求的交叉价格弹性:(cross-price elasticity)供给价格弹性:(price elasticity of supply)6.供给需求与政策价格上限:(price ceiling)价格下限:(price floor)税收归宿:(tax incidence)7.消费者、生产者与市场效率福利经济学:(welfare economics)支付意愿:(willingness to pay)消费者剩余:(consumer surplus)成本:(cost)生产者剩余:(producer surplus)效率:(efficiency)平等:(equality)8.赋税的应用无谓损失:(deadweight loss)9.国际贸易世界价格:(world price)关税:(tariff)10.外部性外部性:(externality)外部性内在化:(internalizing the externality)矫正税:(corrective taxes)科斯定理:(coase theorem)交易成本:(transaction cost)11.公共物品和公共资源排他性:(excludability)消费中的竞争性:(rivalry in consumption)私人物品:(private goods)公共物品:(public goods)公共资源:(common resources)俱乐部物品:(club goods)搭便车者:(free rider)成本-收益分析:(cost-benefit analysis)公地悲剧:(tragedy of commons)12.税制设计纳税义务:(tax lianility)预算赤字:(budget defict)预算盈余:(budget surplus)平均税率:(average tax rate)边际税率:(marginal tax rate)定额税:(lump-sum tax)受益原则:(benefits principle)支付能力原则:(ability-to-pay principle)纵向平等:(vertical equity)横向平等:(horizontal equity)比例税:(proportional tax)累退税:(regressive tax)累进税:(progressive tax)13.生产成本总收益:(total revenue)总成本:(total cost)利润:(profit)显性成本:(explicit costs)隐性成本:(implicit costs)经济利润:(economic profit)会计利润:(counting profit)生产函数:(production function)边际产量:(marginal product)边际产量递减:(diminishing marginal product)固定成本:(fixed costs)可变成本:(variable costs)平均总成本:(average total cost)平均固定成本:(average fixed costs)平均可变成本:(average variable costs)边际成本:(marginal cost)有效规模:(efficient scale)规模经济:(economies of scale)规模不经济:(diseconomies of scale)规模收益不变:(constant returns to scale) 14.竞争市场上的企业竞争市场:(competitive market)平均收益:(average revenue)边际收益:(marginal revenue)沉没成本:(sunk revenue)15.垄断垄断企业:(monopoly)自然垄断:(natural monopoly)价格歧视:(price discrimination)16.垄断竞争寡头:(oligopoly)垄断竞争:(monopolistic competition) 17.寡头博弈论:(game theory)勾结:(collusion)卡特尔:(cartel)纳什均衡:(Nash equilibrium)囚徒困境:(prisoners’ dilemma)占优策略:(dominant strategy)18.生产要素市场生产要素:(factors of production)生产函数:(production function)劳动的边际产量:(marginal product of labor)边际产量递减:(diminishing marginal product)边际产量值:(value of the marginal product)资本:(capital)19.收入与歧视补偿性工资差别:(compensating differential)人力资本:(human capital)工会:(union)罢工:(strike)效率工资:(efficiency)歧视:(discrimination)20.收入不平等与贫困贫困率:(poverty rate)贫困率:(poverty line)实物转移支付:(in-kind transfers)生命周期:(life cycle)持久收入:(permanent income)功利主义:(utilitariansm)效用:(utilitariansm)自由主义:(liberalism)最大最小准则:(maximin criterion)负所得税:(negative income tax)福利:(welfare)社会保险:(social insurance)自由至上主义:(libertarianism)21.消费者选择理论预算约束线:(budget constraint)无差异曲线:(indiffernnce curve)边际替代率:(marginal rate of subtitution)完全替代品:(perfect substitudes)完全互补品:(perfect complements)正常物品:(normal good)低档物品:(inferior good)收入效应:(income effect)替代效应:(substitution effect)吉芬物品:(Giffen good)22.微观经济学前沿道德风险:(moral hazard)代理人:(agent)委托人:(principal)逆向选择:(adverse selection)发信号:(signaling)筛选:(screening)政治经济学:(political economy)康多塞悖论:(condorcet paradox)阿罗不可能性定理:(Arrow’s impossibility)中值选民定理:(median vater theorem)行为经济学:(behavioral economics)23.一国收入的衡量微观经济学:(microeconomics)宏观经济学:(macroeconomics)国内生产总值:(gross domestic product,GDP)消费:(consumption)投资:(investment)政府购买:(government purchase)净出口:(net export)名义GDP:(nominal GDP)真实GDP:(real GDP)GDP平减指数:(GDP deflator)24.生活费用的衡量消费物价指数:(consumer price index,CPI)通货膨胀率:(inflation rate)生产物价指数:(produer price index,PPI)指数化:(indexation)生活费用津贴:(cost-of-living allowance,COLA)名义利率:(nominal interest rate)25.生产与增长生产率:(productivity)物质资本:(physical capital)人力资本:(human capital)自然资源:(natural resources)技术知识:(technological knoeledge)收益递减:(diminishing returns)追赶效应:(catch-up effect)26.储蓄、投资和金融体系金融体系:(financial system)金融市场:(financial markets)债券:(bond)股票:(stock)金融中介机构:(financial intermediaries)共同基金:(mutual fund)国民储蓄:(national saving)私人储蓄:(private saving)公共储蓄:(public saving)预算盈余:(budget surplus)预算赤字:(budget deficit)可贷资金市场:(market for loanable funds)挤出:(crowding out)27.金融学的基本工具金融学:(finance)现值:(present value)终值:(future value)复利:(compounding)风险厌恶:(risk aversion)多元化:(diversification)企业特有风险:(firm-specific risk)市场风险:(market risk)基本面风险:(fundamental analysis)有效市场假说:(efficient markets by pothesis)信息有效:(informational efficiency)随机游走:(random walk)28.失业劳动力:(laborforce)失业率:(unemployment rate)劳动力参与率:(labor-force participation rate)自然失业率:(natural rate of unemployment)周期性失业:(cyclical unemployment)失去信心的工人:(discouraged workers)摩擦性失业:(frictional unemployment)结构性失业:(structural unemployment)寻找工作:(job search)失业保险:(unemployment insurance)工会:(union)集体谈判:(collective bargaining)罢工:(strike)效率工资:(essiciency wages)29.货币制度货币:(money)交换媒介:(medium of exchange)计价单位:(unit of account)价值储藏手段:(store of value)流动性:(liquidity)商品货币:(commodity money)法定货币:(fiat money)通货:(currency)活期存款:(demand deposits)联邦储备局:(Federal Reserve)中央银行:(central bank)货币供给:(money supply)货币政策:(monetary policy)准备金:(reserves)部分准备金银行:(fractional-reserve banking)准备金率:(reserve ratio)货币乘数:(money multiplier)银行资本:(bank capital)杠杆:(leverage)杠杆率:(leverage ratio)资本需要量:(capital requirement)公开市场操作:(open-market operations)贴现率:(discount rate)法定准备金:(reserve requirements)补充金融计划:(supplementary financing program)联邦基金利率:(federal funds rate)30.货币增长与通货膨胀铲除通胀:(whip Inflation Now)货币数量论:(quantity theory of money)名义变量:(nominal variables)真实变量:(real variables)古典二分法:(classiacl dichotomy)货币中性:(monetary neutrality)货币流通速度:(velocity of money)数量方程式:(quantity equation)通货膨胀税:(inflation tax)费雪效应:(Fisher effect)皮鞋成本:(shoeleather cost)菜单成本:(menu costs)31.开放经济的宏观经济学封闭经济:(closed economy)开放经济:(open economy)出口:(exports)净出口:(net exports)贸易余额:(trade balance)贸易盈余:(trade surplus)贸易平衡:(balanced trade)贸易赤字:(trade deficit)资本净流出:(net capital outflow)名义汇率:(nominal exchange rate)升值:(appreciation)贬值:(depreciation)真实汇率:(real exchange rate)购买力平价:(purchasing-power parity)32.开放经济的宏观经济理论贸易政策:(trade policy)资本外逃:(capital flight)33.总需求与总供给衰退:(recession)萧条:(depression)总需求与总供给模型:(model of aggregate demand and aggregate supply)总需求曲线:(aggregate-demand curve)总供给曲线:(aggregate-supply curve)自然产出水平:(natural level of output)滞胀:(stagflation)34.货币政策和财政政策对总需求影响流动性偏好理论:(theory of liquidity)财政政策:(fisical policy)乘数效应:(multiplier effect)挤出效应:(crowding-out effect)自动稳定器:(automatic stabilizers)35.通胀与失业之间的短期权衡取舍菲利普斯曲线:(phillips curve)自然率假说:(natural-rate hypothesis)供给冲击:(supply shock)牺牲率:(sacrifice ratio)理性预期:(rational expectations)。

1.Segmentation：Demographics，Psychographics，Behavioral Characteristics，Benefits sought2.Three basic criteria：-Current size of the segment and anticipated growth potential -Competition -Compatibility with the company’s overall objectives/feasibility of reaching a designated target3.Target Market Strategy Options：Standardized global marketing ；Concentrated global marketing；Differentiated global marketing4. Which Strategy Should Be Used?It depends on Vision，Attitude toward risk，Available investment capital ，How much control is desired5.Ways entry to a foreign country :Licensing；Contract manufacturing；Franchising；Investment6.Investmen t Forms：-Joint ventures -Minority or majority equity stakes -Outright acquisition7. Global Strategic Partnerships Possible terms -Collaborative agreements -Strategic alliances -Strategic international alliances -Global strategic partnerships8.Co-branding：US company Unilever partners with Campbell's in Australia9. Strategic Alternatives in Global Marketing: Extend, Adapt, Create (5 options)10.New Products in Global Marketing:Pursue opportunities in competitive arenas of global marketplace; Focus on one or only a few businesses; Active involvement from senior management; Ability to recruit and retain best employees; understand the importance of speed in bringing new products to market11. Unit Sales ----Market Share ----Return on investmentPenetration Pricing渗透定价----Market Skimming撇脂定价法12. Channel Objectives:Place utility空间效用Form utility形式效用Information utility信息效用13. Distribution Channels: Terminology and Structure14.Global Retailing Strategies: Organic; Franchise; Chain Acquisition; Joint Venture easy enter15.Promotion Mix (Communication): advertising; public relations; sales Promotion; Personal selling; Direct Marketing/Direct selling16.Advertising Appeal广告诉求: Rational approach; Emotional approach; Selling proposition; Creative execution17. Five forces i nfluence competition in an industry:①Threat of New Entrants: 8 Barriers to Entry: Economies of Scale; production per period increases; Product differentiation; Capital requirements; Switching costs; Distribution channels; Government policy②Threat of Substitute Products;③Bargaining Power of Buyers;④Bargaining Power of Suppliers;⑤Rivalry（竞争）Among Competitors18.Creating Competitive Advantage via Strategic Intent通过战略意图建立竞争优势：①Building Layers of advantage ②Searching for Loose Bricks ③Changing the Rules of Engagement ④Collaborating。

全国自考（国际商务英语）-试卷8(总分：92.00，做题时间：90分钟)一、词组英译汉(总题数：10，分数：20.00)1.Consumerism（分数：2.00）填空项1:__________________ （正确答案：正确答案：消费，消费主义）解析：解析：专业商务术语。

2.buying rate（分数：2.00）填空项1:__________________ （正确答案：正确答案：买入价）解析：解析：专业商务术语。

3.emerging nation（分数：2.00）填空项1:__________________ （正确答案：正确答案：新兴国家）解析：解析：emerging意为“新兴的，崭露头角的”；nation意为“国家，民族”。

4.income tax（分数：2.00）填空项1:__________________ （正确答案：正确答案：所得税）解析：解析：income意为“收入”；tax意为“税”。

5.cargo receipt（分数：2.00）填空项1:__________________ （正确答案：正确答案：货物收据）解析：解析：cargo意为“货物，船货”；receipt意为“收据”。

6.direct quote（分数：2.00）填空项1:__________________ （正确答案：正确答案：直接标价）解析：解析：专业商务术语，也称direct quotation。

7.tariff concessions（分数：2.00）填空项1:__________________ （正确答案：正确答案：关税减让）解析：解析：tariff意为“关税”；concession意为“让步，退位”。

8.earning in foreign trade（分数：2.00）填空项1:__________________ （正确答案：正确答案：外汇收入）解析：解析：earning意为“收入”；foreign trade意为“外贸”。