Download International Economics 13th Edition Carbaugh Test Bank all chapters

International Economics 13th Edition
Carbaugh Test Bank

Go to download the full and correct content document:
https://testbankfan.com/product/international-economics-13th-edition-carbaugh-test-b
ank/
More products digital (pdf, epub, mobi) instant
download maybe you interests ...
International Economics 16th Edition Carbaugh Test Bank
https://testbankfan.com/product/international-economics-16th-
edition-carbaugh-test-bank/
International Economics 15th Edition Robert Carbaugh

Test Bank
edition-robert-carbaugh-test-bank/

Test Bank
edition-robert-carbaugh-test-bank/
Global Economics 13th Edition Robert Carbaugh Test Bank
https://testbankfan.com/product/global-economics-13th-edition-
robert-carbaugh-test-bank/
International Economics 16th Edition Carbaugh Solutions
Manual
edition-carbaugh-solutions-manual/
International Economics 17th Edition Carbaugh Solutions

Manual
edition-carbaugh-solutions-manual/

Solutions Manual
edition-robert-carbaugh-solutions-manual/

Solutions Manual
edition-robert-carbaugh-solutions-manual/
Global Economics 13th Edition Robert Carbaugh Solutions

Manual
https://testbankfan.com/product/global-economics-13th-edition-
robert-carbaugh-solutions-manual/
CHAPTER 9—INTERNATIONAL FACTOR MOVEMENTS AND
MULTINATIONAL ENTERPRISES
MULTIPLE CHOICE
1. "Risk spreading" is a motive most likely to be served when firms undergo:

a. Horizontal integration
b. Vertical integration
c. Conglomerate integration
d. None of the above
ANS: C PTS: 1
2. The source (home) location of most of the world's leading multinational enterprises is:
a. North America and Europe
b. North America and Asia
c. Europe and South America
d. Europe and Asia
ANS: A PTS: 1
3. Which type of multinational diversification occurs when the parent firm establishes foreign
subsidiaries to produce intermediate goods going into the production of finished goods?
a. Forward vertical integration
b. Backward vertical integration
c. Forward horizontal integration
d. Backward horizontal integration
ANS: B PTS: 1
4. Suppose that an American automobile manufacturer establishes foreign subsidiaries to market the
automobiles. This practice is referred to as:
a. Forward vertical integration
b. Forward conglomerate integration
c. Backward vertical integration
d. Backward conglomerate integration
ANS: A PTS: 1
5. Suppose that a steel manufacturer headquartered in Japan sets up a subsidiary in Canada to produce
steel. This practice is referred to as:
a. Conglomerate integration
b. Forward vertical integration
c. Backward vertical integration
d. Horizontal integration
ANS: D PTS: 1
6. During the 1970s, American oil companies acquired nonenergy companies (e.g., copper, auto
components) in response to anticipated decreases in investment opportunities in oil. This type of
diversification is referred to as:
a. Horizontal integration
b. Conglomerate integration
c. Forward vertical integration
d. Backward vertical integration
ANS: B PTS: 1
7. Which of the following best refers to the outright construction or purchase abroad of productive
facilities, such as manufacturing plants, by domestic residents?
a. Direct investment
b. Portfolio investment
c. Short-term capital investment
d. Long-term capital investment
ANS: A PTS: 1
8. In recent years, the largest amount of U.S. direct investment abroad has occurred in:
a. Central America
b. South America
c. Europe
d. Japan
ANS: C PTS: 1
9. In recent years, most foreign direct investment in the United States has come from:
a. Western Europe
b. Central America
c. South America
d. Asia
ANS: A PTS: 1
10. Most U.S. direct investment abroad occurs in:

a. Communications
b. Petroleum
c. Finance and insurance
d. Manufacturing
ANS: D PTS: 1
11. Most foreign direct investment in the United States occurs in:
a. Public utilities
b. Communications
c. Manufacturing
d. Mining and smelting
ANS: C PTS: 1
12. Which of the following is not a significant motive for the formation of multinational enterprises?
a. Avoiding tariffs by obtaining foreign manufacturing facilities
b. Obtaining the benefits from overseas comparative advantages
c. The acquisition of natural resource supply sources
d. Subsidies granted by the home government to overseas corporations
ANS: D PTS: 1
13. Suppose General Motors charges its Mexican subsidiary $1 million for auto assembly equipment that
could be purchased on the open market for $800,000. This practice is best referred to as:
a. International dumping
b. Cost-plus pricing
c. Transfer pricing
d. Technological transfer
ANS: C PTS: 1
14. Multinational enterprises may provide benefits to their source (home) countries because they may:
a. Secure raw materials for the source country
b. Shift source country technology overseas via licensing
c. Export products which reflect source-country comparative disadvantage
d. Result in lower wages for source-country workers
ANS: A PTS: 1
15. Trade analysis involving multinational enterprises differs from our conventional trade analysis in that
multinational enterprise analysis emphasizes:
a. Absolute cost differentials rather than comparative cost differentials
b. The international movement of factor inputs rather than finished goods
c. Purely competitive markets rather than imperfectly competitive markets
d. Portfolio investments rather than direct foreign investments
ANS: B PTS: 1
16. Direct foreign investment has taken all of the following forms except:
a. Investors buying bonds of an existing firm overseas
b. The creation of a wholly owned business enterprise overseas
c. The takeover of an existing company overseas
d. The construction of a manufacturing plant overseas
ANS: A PTS: 1
17. Which of the following would best explain why foreign direct investment might be attracted to the
United States?
a. U.S. price ceilings that hold down the price of energy
b. U.S. wage rates exceeding the productivity of U.S. labor
c. Artificially high prices being charged for the stock of U.S. firms
d. Anticipations of future reductions in U.S. tariff levels
ANS: A PTS: 1
18. Both Coca-Cola Co. and Pepsi-Cola Co. are multinational firms in that their soft drinks are bottled
throughout the world. This practice illustrates:
a. Backward vertical integration
b. Forward vertical integration
c. Horizontal integration
d. Conglomerate integration
ANS: C PTS: 1
19. The market power effect of an international joint venture can lead to welfare losses for the domestic
economy unless offset by cost reductions. Which type of cost reduction would not lead to offsetting
welfare gains for the overall economy?
a. R&D generating improved technology
b. Development of more productive machinery
c. New work rules promoting worker efficiency
d. Lower wages extracted from workers
ANS: D PTS: 1
20. All of the following are potential advantages of an international joint venture except:
a. Sharing research and development costs among corporations
b. Forestalling protectionism against imports
c. Establishing work rules promoting higher labor productivity
d. Operating at diseconomy-of-scale output levels
ANS: D PTS: 1
21. Which term best describes the New United Motor Manufacturing Co.?
a. Multinational enterprise
b. International joint venture
c. Multilateral contract
d. International commodity agreement
ANS: B PTS: 1
22. Multinational enterprises:

a. Increase the transfer of technology between nations
b. Make it harder for nations to foster activities of comparative advantage
c. Always enjoy political harmony in nations where their subsidiaries operate
d. Require governmental subsidies in order to conduct worldwide operations
ANS: A PTS: 1
23. Firms undertake multinational operations in order to:

a. Hire low-wage workers
b. Manufacture in nations they have difficulty exporting to
c. Obtain necessary factor inputs
d. All of the above
ANS: D PTS: 1
24. Multinational enterprises face problems since they:

a. Cannot benefit from the advantages of comparative advantage
b. May raise political problems in countries where their subsidiaries operate
c. Can invest only at home, but not overseas
d. Can invest only overseas, but not at home
ANS: B PTS: 1
25. American labor unions have recently maintained that U.S. multinational enterprises have been:
a. Exporting American jobs by investing overseas
b. Exporting American jobs by keeping investment in the United States
c. Importing cheap foreign workers by shifting U.S. investment overseas
d. Importing cheap foreign workers by keeping U.S. investment at home
ANS: A PTS: 1
26. American labor unions accuse U.S. multinational firms of all of the following except: that such firms
a. Enjoy unfair advantages in taxation
b. Export jobs by shifting technology overseas
c. Export jobs by shifting investment overseas
d. Operate at output levels where scale economies occur
ANS: D PTS: 1
27. Which of the following refers to the price charged for products sold to a subsidiary of a multinational
enterprise by another subsidiary in another nation?
a. Transfer pricing
b. International dumping
c. Price discrimination
d. Full-cost pricing
ANS: A PTS: 1
28. Which business device involves the creation of a new business by two or more companies, often for a
limited period of time?
a. Multinational enterprise
b. International joint venture
c. Horizontal merger
d. Vertical merger
ANS: B PTS: 1
29. International joint ventures can lead to welfare losses when the newly established firm:
a. Adds to the preexistent productive capacity
b. Enters markets neither parent could have entered individually
c. Yields cost reductions unavailable to parent firms
d. Gives rise to increased amounts of market power
ANS: D PTS: 1
30. Multinational enterprises:

a. Always produce primary goods
b. Always produce manufactured goods
c. Produce primary goods or manufactured goods
d. None of the above
ANS: C PTS: 1
Figure 9.1 illustrates the market conditions facing Sony Company and American Company initially
operating as competitors in the domestic ball bearing market. Each firm realizes constant long-run
costs, MC0=AC0.
Figure 9.1. International Joint Venture

31. Consider Figure 9.1. With Sony Company and American Company behaving as competitors, the
equilibrium price and output respectively equal:
a. $4 and 2 units
b. $4 and 4 units
c. $6 and 2 units
d. $6 and 4 units
ANS: B PTS: 1
32. Consider Figure 9.1. At the equilibrium price, domestic households attain ____ of consumer surplus:
a. $4
b. $8
c. $12
d. $16
ANS: B PTS: 1
33. Consider Figure 9.1. Suppose that Sony Company and American Company jointly form a new firm,
Venture Company, whose ball bearings replace the output sold by the parents in the domestic market.
Assuming that Venture Company operates as a monopoly and that its costs equal MC0=AC0, the firm's
price, output, and total profit would respectively equal:
a. $6, 2 units, $4
b. $4, 2 units, $2
c. $6, 4 units, $4
d. $4, 4 units, $2
ANS: A PTS: 1
34. Consider Figure 9.1. Compared to the market equilibrium position achieved by Sony Company and
American Company as competitors, Venture Company as a monopoly leads to a deadweight loss of
consumer surplus of:
a. $2
b. $4
c. $6
d. $8
ANS: A PTS: 1
35. Consider Figure 9.1. Assume Venture Company's formation yields new cost reductions, indicated by
MC1=AC1, which result from technological advances. Realizing that Venture Company results in a
deadweight loss of consumer surplus, the net effect of Venture Company's formation on the welfare of
the domestic economy is:
a. No change
b. Gain of $2
c. Gain of $4
d. Loss of $2
ANS: B PTS: 1
MC1=AC1, which result from wage concessions accepted by Venture Company employees. The net
effect of Venture Company's formation on the welfare of the domestic economy is:
a. No change
b. Gain of $2
c. Loss of $2
d. Loss of $4
ANS: C PTS: 1
MC1=AC1, which result from changes in work rules by Venture Company employees that led to higher
worker productivity. The net effect of Venture Company's formation on the welfare of the domestic
economy is:
a. No change
b. Gain of $2
c. Gain of $4
d. Loss of $2
ANS: B PTS: 1
Figure 9.2 represents the U.S. labor market. Assume that labor and capital are the only factors of
production. Also assume the initial supply schedule of labor is denoted by S0 and consists entirely of
native U.S. workers. The demand schedule of labor is denoted by D0.
Figure 9.2. U.S. Labor Market

38. Consider Figure 9.2, at labor market equilibrium, workers are hired at a wage rate of $____ per hour,
while total wages equal ____.
a. 2, $12, $24
b. 2, $12, $36
c. 3, $9, $27
d. 3, $9, $36
ANS: A PTS: 1
39. Consider Figure 9.2. At labor market equilibrium, the payment to U.S. capital owners equals:
a. $3
b. $6
c. $9
d. $12
ANS: B PTS: 1
40. Consider Figure 9.2. If Mexican migration to the United States results in the labor force increasing to 3
workers, denoted by schedule S1, the:
a. Wage rate for native U.S. workers decreases and the payments to U.S. capital owners
increases
b. Wage rate for native U.S. workers decreases and the payments to U.S. capital owners
decreases
c. Wage rate for native U.S. workers increases and the payments to U.S. capital owners
increases
d. Wage rate for native U.S. workers increases and the payments to U.S. capital owners
decreases
ANS: A PTS: 1
41. Consider Figure 9.2. As the result of the Mexican migration to the United States:
a. U.S. capital owners lose
b. Native U.S. workers lose
c. U.S. capital owners and native U.S. workers lose
d. U.S. capital owners and native U.S. workers gain
ANS: B PTS: 1
42. Consider Figure 9.2. Policies that permit Mexican workers to freely migrate to the United States would
likely be resisted by:
a. U.S. capital owners
b. Native U.S. workers
c. U.S. capital owners and native U.S. workers
d. Neither U.S. capital owners nor native U.S. workers
ANS: B PTS: 1
43. ____ refers to highly educated and skilled people who migrate from poor developing countries to
wealthy industrial countries.
a. Direct investment
b. Portfolio investment
c. Transfer pricing
d. Brain drain
ANS: D PTS: 1
44. "Guest worker" programs generally result in temporary migration of workers from:
a. Wealthy nations to wealthy nations
b. Wealthy nations to impoverished nations
c. Impoverished nations to wealthy nations
d. Impoverished nations to impoverished nations
ANS: C PTS: 1
45. Mexico's ____ refer to an assemblage of U.S.-owned companies that use U.S.-owned parts and
Mexican assembly to manufacture goods that are exported to the United States.
a. Multinational corporations
b. International joint ventures
c. Maquiladoras
d. Transplants
ANS: C PTS: 1
46. Critics of U.S. trade and immigration policy maintain that

a. It has depressed wages for many Americans
b. It has increased the supply of less educated workers in the United States
c. It has an adverse impact on the employment opportunities of less-skilled, American
workers
d. All of the above
ANS: D PTS: 1
47. American critics of U.S. multinational enterprises contend that they promote
a. Runaway jobs
b. Technology transfers abroad
c. Tax evasion
d. All of the above
ANS: D PTS: 1
48. Joint ventures may lead to
a. Welfare increases
b. Welfare decreases
c. No changes in welfare
d. All of the above
ANS: D PTS: 1
49. Foreign direct investment typically occurs when

a. The earnings of the parent company are invested in plant expansion overseas
b. The parent company transfers jobs overseas
c. The parent company closes its foreign production plants
d. The parent company purchases bonds of foreign governments
ANS: A PTS: 1
TRUE/FALSE
1. International trade in goods and services and flows of productive factors are substitutes for each other.
ANS: T PTS: 1
2. Most multinational corporations have a low ratio of foreign sales to total sales, usually 5 percent or
less.
ANS: F PTS: 1
3. Vertical integration occurs if a parent multinational corporation establishes foreign subsidiaries to

produce intermediate goods or inputs that go into the production of a finished good.
ANS: T PTS: 1
4. Exxon Oil Co. would undertake forward vertical integration if its retailing division acquired oil wells
in the Middle East.
ANS: F PTS: 1
5. Forward vertical integration would occur if a U.S. automobile manufacturer acquired a German
subsidiary.
ANS: F PTS: 1
6. Most vertical foreign investment, as implemented by multinational corporations, is "forward" in nature

rather than "backward."
ANS: F PTS: 1
7. Horizontal integration would occur if General Motors sets up a subsidiary in Mexico to produce
automobiles identical to those that it produces in the United States.
ANS: T PTS: 1
8. Multinational corporations sometimes locate manufacturing subsidiaries abroad to avoid tariff barriers
which would place their products at a competitive disadvantage in a foreign country.
ANS: T PTS: 1
9. Foreign direct investment would occur if Mobile Inc. of the United States acquired sufficient common
stock in a foreign oil company to assume voting control.
ANS: T PTS: 1
10. Foreign direct investment would occur if Microsoft Inc. of the United States purchased securities of
the French government.
ANS: F PTS: 1
11. Conglomerate integration would occur if General Motors Inc. of the United States acquired a
controlling interest in a British chemical company.
ANS: T PTS: 1
12. Both economic theory and empirical studies support the notion that foreign direct investment is
conducted in anticipation of future profits.
ANS: T PTS: 1
13. Multinational corporations often locate manufacturing operations abroad in order to take advantage of
foreign resource endowments or wage scales.
ANS: T PTS: 1
14. If the size of the Canadian market is large enough to permit efficient production in Canada, a U.S. firm
would profit by establishing a Canadian manufacturing subsidiary or licensing rights to a Canadian
firm to manufacture and sell its product in Canada.
ANS: T PTS: 1
15. There is virtually universal agreement among economists that foreign direct investment in the United
States has reduced the economic welfare of the average U.S. citizen.
ANS: F PTS: 1
16. Foreign-owned companies in the United States operate under more strict antitrust, environmental, and
other regulations than U.S.-owned companies.
ANS: F PTS: 1
17. During the 1980s and 1990s, Japanese auto firms established manufacturing facilities in the United
States known as "transplants."
ANS: T PTS: 1
18. By establishing transplant factories in the United States, Japanese automakers were able to avoid
export restrictions imposed by the Japanese government, but not import restrictions imposed by the
U.S. government.
ANS: F PTS: 1
19. Mergers differ from joint ventures in that they involve the creation of a new business firm, rather than
the union of two existing companies.
ANS: F PTS: 1
20. Developing countries, such as Mexico and India, often close their borders to foreign companies unless
they are willing to take on partner companies in developing countries.
ANS: T PTS: 1
21. In natural-resource oriented industries, such as oil and copper, joint ventures have often been formed
by several companies since the cost of resource-extraction may be prohibitively large for a particular
company.
ANS: T PTS: 1
22. International joint ventures tend to yield a welfare increasing market-power effect and a welfare
decreasing cost-reduction effect.
ANS: F PTS: 1
23. A joint venture leads to increases in national welfare if the cost-reduction effect is due to wage
concessions and if it more than offsets the market-power effect.
ANS: F PTS: 1
24. A joint venture leads to increases in national welfare if its cost-reduction effect is due to productivity
gains and if it more than offsets the market-power effect.
ANS: T PTS: 1
25. Joint ventures lead to losses in national welfare when the newly established business adds to
pre-existing production capacity and fosters additional competition.
ANS: F PTS: 1
26. Joint ventures lead to national welfare gains if the newly established business yields productivity
increases that would have been unavailable if each parent performed the same function separately.
ANS: T PTS: 1
27. A joint venture along two large competing companies tends to yield a market-power effect, which
results in a reduction in consumer surplus, that is not offset by a corresponding gain to producers.
ANS: T PTS: 1
28. If a joint venture among competing firms is able to cut costs by extracting wage concessions from
domestic workers, national welfare increases.
ANS: F PTS: 1
29. Critics of multinational corporations maintain that they often abandon domestic workers in order to
take advantage of lower wage scales abroad.
ANS: T PTS: 1
30. The theory of multinational enterprise is totally inconsistent with the principle of comparative
advantage.
ANS: F PTS: 1
31. Due to transfer-pricing problems, multinational corporations must shift profits away from countries
with low corporate tax rates to high tax-rate countries, thus absorbing a larger tax bite.
ANS: F PTS: 1
32. Maquiladoras refer to an assemblage of U.S.-owned companies that combine Mexican parts and U.S.
assembly to manufacture goods that are exported to Mexico.
ANS: F PTS: 1
33. Opposition to Mexico's maquiladoras has come from U.S. labor unions which claim that maquiladoras
have resulted in job losses for U.S. workers.
ANS: T PTS: 1
34. As workers migrate from low-wage Mexico to high-wage United States, wages tend to rise in Mexico
and fall in the United States.
ANS: T PTS: 1
35. The migration of workers from Mexico to the United States tends to exert downward pressure on the
wages of native U.S. workers that compete against Mexican workers for jobs.
ANS: T PTS: 1
36. The effect of workers migrating from low-wage Mexico to high-wage United States is to redistribute
income from capital to labor in the United States and from labor to capital in Mexico.
ANS: F PTS: 1
37. In the United States, labor unions have generally resisted efforts to implement restrictions on the
number of foreigners allowed into the country.
ANS: F PTS: 1
38. Developing countries have sometimes feared open immigration policies of developed countries on the
grounds that highly educated and skilled people may emigrate to the developed countries, thus limiting
the growth potential of the developing countries.
ANS: T PTS: 1
39. The United States has discouraged the "brain drain" problem by permitting the immigration of
unskilled workers while restricting the immigration of skilled persons.
ANS: F PTS: 1
40. Labor migration tends to increase output and decrease wages in the country of immigration while
decreasing output and increasing wages in the country of emigration.
ANS: T PTS: 1
SHORT ANSWER
1. What are the typical ways in which multinational enterprises have diversified their operations?
ANS:
Multinational enterprises have diversified their operations along vertical, horizontal, and conglomerate
lines.
PTS: 1
2. What are Mexican maquiladoras?
ANS:
Maquiladoras are assemblages of foreign-owned companies that use foreign parts and Mexican
assembly to produce goods that are exported to the United States.
PTS: 1
ESSAY
1. Are there any differences between the theory of multinational enterprises and conventional trade
theory?
ANS:
There are major differences. The conventional model assumes that commodities are traded between
independent, competitive businesses. However, multinational enterprises are often vertically integrated
businesses with substantial intrafirm sales. Also, multinational enterprises may use transfer pricing to
maximize overall company profits of any single subsidiary.
PTS: 1
2. What are the disadvantages of forming joint ventures?
ANS:
A joint venture is a cumbersome organization compared with a single organization. Control is divided,
creating problems of "two masters." Success or failure depends on how well companies work together
despite having different objectives, corporate cultures and ways of doing things. The action of
corporate chemistry is hard to predict, but it is critical because joint-venture agreements usually
provide both partners an ongoing role in management. When joint-venture ownership is divided
equally, as often occurs, deadlocks in decision making can take place. Even when negotiated balance is
achieved, it can be upset by changing corporate goals or personnel.
PTS: 1
Another random document with
no related content on Scribd:
make a purer vegetable product. The substance has quite a large
field but it is not intimately connected with the packing business.
Cotton Seed Stearine.—This is a purchasable product and is
used at times as a substitute for oleo stearine.
Lard Oil.—The production of lard oil used in compounding
lubricating oils and illuminating oils is still carried on to some extent.
The process consists of graining the oils in graining tanks or in
seeding trucks similar to oleo oil graining trucks.
Pressing.—The lard cooled to a temperature of 40° F. is placed in
cloth wrapper arranged so that all oil is strained through the wrapper.
The solid substance contained in the wrapper is lard stearine used to
harden pure lard.
FIG. 158.—FILTER PRESS FOR LARD OR OLEO OIL.
Graining.—After the fats have been washed they should be drawn

into trucks or tierces and placed in a room where there is good
ventilation, and kept there for about two days, giving the acid fumes
an opportunity to pass off; the fat will then be found to be lowered to
about 80° F. and should then be removed to a room that is
refrigerated. After remaining in this temperature three or four days
the fats will be found to be crystallized, or grained, and of about the
temperature of the rooms. It is then ready to go to press.
Pressing Temperatures.—The usual pressing temperatures for
the several kinds of commodities pressed are as follows:
Tallow 58° to 65° F.

Prime steam lard 48° to 50° F.
Neatsfoot oil 45° to 48° F.
These and the temperature of the room, however, are subject to

variations.
No. 2 Lard Oil.—A lower quality of lard oil is made from hog
greases. These are made from condemned hogs, catch basin
skimmings and similar sources. The methods are similar to those
used for No. 1 lard oil, except that the former is treated as an edible
product and the latter as inedible.
The extracted stearine is sold or used for soap purposes.
Cold Test-Oil.—It is not customary to speak of any particular cold
test of cotton or grease oils; however, in case of pure lard oil,
pressed, it would have a cold test of about 42° F. Pure neatsfoot
would have a cold test of about 45° F. In case colder degree oils are
desired, either pure lard or neatsfoot, it would be necessary to make
the lard colder than above; as to neatsfoot oil, if it is desired to make
a 30° F. test, it would be best to make two pressings. First chill stock
to a temperature of 42° F., pressing it in a room at 45° F. and then
take the oil that is made in this way, refrigerating it in a room at 32° F.
and pressing it at a temperature of 32° F.
Treatment for Lard Grease.—Before pressing the low grade
greases it is necessary to wash with sulphuric acid to eliminate the
impurities, such as water, lime soaps, albuminous matters and
ordinary dirt. Shallow wooden vats are ordinarily used for this
purpose, the vats being of greater width than depth, as the acid
water settles best in a shallow receptacle. Where a comparatively
small amount of work is to be done an ordinary wooden vat made
out of good sound pine, with three-inch staves and well bolted
together, is all that is necessary, but where the work is continuous
these wooden vats should be lined with ten-ounce lead, as the acid
very soon destroys the vats.
Washing Methods.—The method of washing with the sulphuric
acid is as follows: Into the wooden or lead-lined vat run clear water
to the amount of about 10 to 15 per cent of the weight of the grease
to be treated, and when the water is in, add one per cent of sulphuric
acid to the fat to be washed, the acid to be 66-degree density. It is
important that the water be put in first, for if the acid is put into the
tank first and the water afterwards run in, an explosion is liable to
occur on account of the intense heat generated by the absorption of
the water by the acid. In case of an explosion the acid is liable to be
thrown on the attendants. After the water and acid have been mixed,
add grease, turn on steam and boil until the fat and acid show clear;
at first it will be muddy or cloudy. Usually a boiling of twenty to thirty
minutes is sufficient. This work should be done on the top floor of the
building, or some place where there is ample room for the escape of
the vapor, as the fumes of the acid are very strong and are injurious
to the building. After the boiling is finished, allow the tank to settle
ten to twelve hours, draw off the acid water from the bottom, and if
the same is clear and clean it shows that the fat had little foreign
substance and the solution can be used over again. If it shows a
great deal of foreign matter in the solution it should be run away.
All pipes leading from such treating vats should be of lead. It is
also necessary that the pipes in the vats be of perforated lead coils,
as iron pipes would very soon be destroyed.
Filtration.—At times, for bleaching purposes, and especially on low
grade greases, it is usual to refine and bleach the oil. The amount of
fullers earth to be used in filtering depends upon the condition of the
oil to be filtered. With prime steam lard no fullers earth should be
used; it is simply filtered through clean press cloths. In the case of
lard oils and tallow oils, the color of the oil desired must also
determine the amount of fullers earth to be used, no set rule as to
the amount to be used in every case being practicable.
Every manufacturer of these different grades of oils has his own
grades and standards established, to which the lard refiners usually
work, and the amount of bleaching, etc., which is necessary for each
individual lot should be governed by the knowledge of the operator,
rather than by any set rules.
In the pressing of these articles the oils generally run from 40 to 52
per cent of stock, the balance being stearine, the percentage of oil
obtained varying according to the temperature at which it is pressed,
and according to the relative market prices for oils and stearines.
CHAPTER XXIV.
SMOKE HOUSE
Smoking Meats — Nomenclature — Soaking — Smoking — Gas Smoking —
Temperatures — Treatment After Smoking — Trolley System —
Canvased Meats — Shrinkage — Wrapping — White Wash — Dried Beef
— Packages — Skipper Fly.
Smoking Meats.—The smoking of meats is an ancient method of

preserving for future use. In the smoking process which drys the
meat and to some extent impregnates it, a preservative result is
brought about, and meats which are smoked can be carried for quite
a long period of time without becoming unfit for food. Notably a
Virginia ham. The old style developed in Virginia was to smoke the
ham for a month or six weeks. The ham, dried to about 75 per cent
of its original weight and in this form hung in a moderately dry place,
would be edible at the end of twelve months.
Nomenclature.—The naming of meats has grown up among the
trade and it is understood that the prefix, “bacon,” as applied to
meats indicated the same to be dry salted, when smoked. Whereas,
when used as a suffix it indicates a sweet pickled cure. For example,
“Bacon Bellies” means dry salted, smoked bellies; while “Breakfast
Bacon” means sweet pickle cured, smoked meats.
Soaking Meats.—Before meats are placed in the smoke house,
they are soaked in fresh water. This is done to remove the surplus
salt, making the meat more palatable; and to give it a better
appearance. If it is not properly soaked the salt forms a white crust
on the surface. Meat over-soaked becomes “water-logged” and often
becomes water-sour when exposed to the heat for smoking, also
moulds quickly after smoking, hence it is essential that this part of
the work receives careful attention.
The best results from soaking are obtained by using soaking water
at a temperature of 65° F. A soaking schedule that will be found to
give excellent results is as follows:
THE TIME REQUIRED TO SOAK MEATS.

Hams at full cured age 2 hrs. (3 min. for each day older)
Bellies, 8-10 lbs., 20 days 1¹⁄₂ hrs. (3 min. for each day older)
Dry salt meats ¹⁄₂ hrs. (except bellies, two hours)
If meats still show salt after smoking change water once, as the
fresh water will take up salt rapidly. It will be found better to change
water than to soak longer. Mildly cured bacon is washed to remove
salt on surface, and not soaked. Thorough washing of all meats with
a stiff brush is done before hanging. “Bacon” or dry salted meat is
not soaked.
Smoking.—After the meats are washed and hung in the smoke
house, they should be allowed to dry about three hours, or until they
stop dripping, for if the smoke is applied while the meats are still
dripping, wherever one piece of meat is subjected to the dripping of
another, the smoke fails to take effect, giving the meats a striped and
discolored appearance. The meat, thoroughly dry, fire should be built
in the smoke house with either hickory, maple or oak wood (partially
green being preferred) and the temperature brought up from 112° to
118° F., and maintained until the surface of the meat has become
thoroughly dried and has a partially glazed appearance. As soon as
this effect is noticed, which will be in five to eight hours, hardwood
sawdust should be added, which will form a dense, penetrating
smoke. At the same time the temperature should be gradually
increased in the smoke house, or brought up to from 115° to 120° F.
A pile of sawdust, quantity depending upon the size of the smoke
house used, should be raised in the center of the house and a few
burning brands of wood laid around it. These will cause the sawdust
to ignite and a small fire, producing a great deal of smoke, will result
therefrom. If the sawdust is put on a fire already burning much of the
sawdust will go up through the house in the form of a light ash, which
is deposited upon the meat, injuring its appearance.
A house of sweet-pickle meats should be smoked for about
twenty-four to thirty hours, to get good results, and be allowed to
stand for twelve hours with the ventilators open, to give the meat a
chance to thoroughly cool off before discharging.
Gas Smoking.—The growing scarcity and consequent increased
cost of wood is forcing many packers to use gas and sawdust for
smoking. With this system the use of sawdust and gas is made in
combination, the gas being burned by slow delivery through a
perforated pipe, and the sawdust banked nearby to burn with a
creeping fire. The use of steam coils for heating the house is a
valuable assistance particularly if exhaust steam is available for use.
Temperatures.—The following temperatures will be found to give
very satisfactory results in smoking and while it will be found
impossible to adhere to them absolutely, it is advisable to do so as
closely as possible during the smoking period:
3 hours in smoke 107° F.

It should be the aim to have the house at a temperature of 118° F.

after twelve hours, and it should be held at that if possible. Meats
thus handled will be found to have a light amber color which
indicates a light smoke, whereas a dark amber would indicate a
heavy smoke. The color of the meats should be regulated by the
requirements of the trade. Lighter meats, such as fancy bacon,
should be hung on the upper floors with the hams nearer the fire.
Treatment After Smoking.—When meats are finished smoking
the fire should be put out, the house opened up, giving it a free
circulation of air, and the meats allowed to thoroughly dry and cool
before being removed. Smoked meats should be handled as little as
possible, for every time they are handled or piled on trucks, it
detracts from their appearance. They become greasy and soon lose
their bright, attractive appearance. After being cooled, the meat
should not be handled until inspected and packed for shipment,
thereby preserving a very desirable appearance, as well as reducing
the cost of labor in operation.
Trolley System.—Originally meats were hung from nails in beams
or from cross sticks suspended from beams, the smoke house being
an open shaft. Many devices have been originated for saving time in
taking meats in and out of smoke, and various forms of racks
operated on overhead rails have been devised. Some sort of
arrangement of this kind is a necessity.
A trolley storage space is usually arranged near to the packing
space and meats packed direct from the trolley. It is usual to make a
complete inspection out of smoke and pass the hams to the storage
trolley, graded, wiped and ready for packing.
Canvased Meats from Weight.—Canvased meats are usually
sold on packed weight, cloth included. The gain in weight usually
pays for all cost involved and somewhat better, as the test below
indicates:
CANVASING 1,031 HAMS.

325 yards sheeting at 4⁷⁄₈c $15.84
3³⁄₄ yards Andover twine at 30c 1.12
274 yards paper at 1³⁄₄c 4.32
One man three hours at 17¹⁄₂c per hour .52
Sewing at $1.10 11.34
Cost of canvasing $33.14
445 pounds wash at 2.1c $ 9.34
1,031 labels at $1 per 1,000 1.03
Eight men two hours twenty-eight min., seven men thirty-five 4.11 $14.48
min.
Total actual cost $47.62
Weight before canvasing 10,550 lbs.
Weight after canvasing 11,041 lbs.
Weight after washing 11,486 lbs.
It will be noted from the previous test that there was a gain of 936
pounds in canvasing these hams, at a cost of $5.09 per 100 pounds.
As hams always sell at a much higher price than this, the difference
would represent the profit in this operation.
Shrinkage.—Shrinkage of smoked meats is a matter tangible in
dollars and cents. Meats for prompt consumption, such as those
smoked and distributed from a branch house, can be smoked for
less than meats smoked at the parent house for shipment via
carload or local freight.
The aim is to smoke out the meat as near green weights as
possible, the amount of shrinkage depending largely upon the
requirements at points to which meats are to be shipped and the
conditions to which they are to be subjected. For instance, hams and
shoulders which are to be used for immediate consumption should
smoke out 98¹⁄₂ to 100 per cent green weight, whereas meats which
are to be held for some length of time after being smoked, or which
are intended for a warmer climate, will smoke out from 95 to 97 per
cent of the green weight.
Meats, which are to be consumed immediately and not shipped to
a warm climate, may carry more moisture and hence show less
shrinkage. At the same time they have a much finer and more
attractive appearance. This is a matter to which an owner or
manager of a smoke house must necessarily give minute and close
attention in order to obtain the best results. Perhaps as important a
point as any, is when the condition of the meats as to dryness is
concerned. Meats should be shipped promptly when in condition and
not allowed to remain in the smoke house awaiting disposition.
The following table shows the result of tests on 1,136 pounds of
meat hung in smoke house for seven consecutive days, temperature
of smoke house about 90° F.
Lbs.
Weight when fully smoked 1,136
24 hours later 1,129
Thirty-six pounds shrinkage
in seven days’ hanging.
Wrapping Smoked Meats.—Fancy meats, now almost entirely

distributed in wrappers of paper or cloth, should be well cooled
before wrapping. A piece of cheese cloth is wrapped over the butt,
and absorptive paper folded next, usually doubled at the butt, with an
outer covering of parchment paper. The neatness and appearance of
the package must be considered and naturally the package should
be kept clean.
For some trade, meats are sewn in burlap. Others are covered
with whitewash solution, or yellow wash. Meats put out in such
manner are usually intended for distant shipment and should be
harder smoked. Canvassed or white-washed meats are paper
wrapped, same as fancy meats, before covering with the outer bag.
White-Wash.—The following recipe can be used for making white-
wash:
1,200 pounds floated barytes.

90 pounds flour.
140 pounds water.
63 pounds white ham wash glue.
1 teaspoon blueing.
The glue should be cooked and strained through a piece of cloth

before being added to the solution, as there is liable to be more or
less sediment in the glue, which should be removed, after which mix
with the flour; let stand about twelve hours, then add the barytes,
using hot water in mixing. After it is mixed add the blueing.
This material should be put in a tub, held at a temperature of 90°
to 100° F., into which the canvassed meats are to be immersed. After
being dipped they are hung up over the tub while an attendant rubs
his hand over them, taking off the surplus material which has
adhered to the package, and at the same time forcing the wash into
the openings of the cloth. They should next be brushed over with a
heavy paint brush, smoothing off the surface, and then hung in a dry-
room to dry. After being allowed to hang for eight to ten hours, until
the wash is thoroughly dry and has hardened, they are ready for
shipment.
Yellow Wash for Meat Canvas.—This is practically the same as
white wash, except that a chrome yellow color is used, and the
mixture will have a yellow instead of a white shade when finished.
Handle same as white wash for meats. A formula for yellow wash is
given as follows:
1,200 pounds floated barytes.

210 pounds whiting.
195 pounds water.
114 pounds lemon yellow.
35 pounds joiner’s glue.
This is used at a temperature of from 90° to 100° F. As all meats

canvassed are sold gross weight, the barytes is added to give an
additional weight to the meats which are canvassed.
A dry room in which meats can be dried by forced draft from fan is
a valuable adjunct for quick deliveries.
Smoking Dried Beef.—Dried beef is an article which has to be
smoked heavier, dried more, than pork hams, and unless the
moisture is well evaporated the time it may be kept will be short. An
approved method for handling dried beef is as follows:
Steam coils should be placed at the top and also at the bottom of
the smoke house. The steam should be turned on until the
temperature of house is between 130° and 140° F. After the meat
has hung in this temperature about thirty hours, a light fire should be
started, by using two or three sticks of wood, and plenty of hard
wood sawdust scattered close to the fire, so as to form a dense
smoke. It is very essential that dried beef should have a strong
smoked flavor. Steam should be kept on the house all the time the
beef is being smoked and it will require eighty to ninety hours under
these conditions to bring the beef out in the best condition.
Beef can be smoked in a regular house, but it takes much longer
and it cannot be handled as satisfactorily as with steam heat in
connection with the smoking process.
After the meat is sufficiently smoked the house should be allowed
to cool off, and the meat to hang for about twenty-four hours before
being handled. It is then ready for packing and shipping. Dried beef
thus handled will shrink about 38 to 33 per cent from the cured
weight to the smoked weight.
The following test will show the shrinkage on 100 pieces of dried
beef hams, also the shrinkage each twenty-four hours after:
SHRINKAGE ON DRIED BEEF.

100 pieces, cellar weight 1,184 lbs.
After smoking 85 hours 812 lbs.
24 hours later 806 lbs.
Packages.—The packing of meats for shipment is best done in

open type barrels or crates. Fancy meats should not be packed to
exceed one hundred pounds per box so as not to injure the shape.
Skipper Fly.—The skipper, the larvae in the life cycle of a fly is the
one pest needing close watching in a smoke house. This fly does not
attack either green or salted meats, but will select a piece of pork
ham in preference to a beef ham. The fly lays an egg which hatches
to a larvae, and this is the disgusting form in which it is the enemy of
sweet-smoked meats.
The preventive seems to be such as windows and doors finely
screened, regular “gassing” with sulphur fumes and ample light. It is
claimed by some that if smoke houses are well lighted, for instance
as a show room, the skipper fly will not frequent them since it prefers
darkness for the egg laying period.
There is no known chemical agent that can be used without
conflicting with pure food laws that will destroy the egg once
deposited. A fly lays upward of thirty eggs during the life cycle of
about two weeks, consequently it multiplies rapidly.
CHAPTER XXV.
DOMESTIC SAUSAGE
Meats and Handling — Arrangement of Department — Curing Meats —
Cooler for Ground Meats — Grinding and Stuffing Room — Smoke
House — Cook Room — Dry Hanging Room — Cooler — Smoking
Temperature — Cooking Time — Shrinkages — Pickle-Cured Products
— Dry-Cured Meats — Packing — Casings and Spices — Sausage
Cereals — Sausage Formulas — Bologna Varnish — Boiled Ham.
Introductory.—There is probably no department where there is

more diversity of methods than in the sausage room. The business
of sausage making is an old one, and was largely developed in
Europe, where on account of the low wages and the high prices for
meats it was necessary to make the cheaper meat products into an
edible article. The gradually increasing value of meats in the United
States makes the same conditions paramount.
In the operation of packing houses the cutting of meats into many
parts so as to supply the various purchasers with what they require,
makes a comparatively large amount of wholesome meat product,
equally nutritious with porter house steak, but not quite so tender or
pleasing to the taste. Cheek meat, hearts and various trimmings are
wholesome as a porterhouse, but not so delectable, at least, in their
original condition; hence, the art of sausage making consists in
taking these products and making from them a palatable, wholesome
and less costly article.
Meats and Handling.—Sausage is made in such varieties that
there are a multitude of ingredients in a multitude of forms. Primarily
beef and pork trimmings are the broad classes, but of these there
are many forms, each of different physical properties. Hearts and
cheeks are, for example, the toughest part of the animal organism,
and these usually find their way to the sausage room. On the other
hand the parts of hams and shoulders used are equally delicate with
the meats so conserved, but are of necessity relegated to the
sausage room on account of their shape as a trimming. It is the
skillful manipulation of these various meats that makes for the real
results in this department. Too frequently, the sausage department is
regarded as a necessity, like the tank house, to put things through.
The most successful operators are those who regard the department
otherwise, and many good and successful businesses have been
builded on the sausage department as a basis; not by trying to make
sausage to retail at five cents per pound, extravagantly speaking.
Arrangement of Department.—This department becomes quite
comprehensive in its scope in large establishments requiring:
Refrigerated space for curing fresh meats.
Cooler for curing meats after ground.
Grinding and stuffing room.
Smoke houses.
Cook room.
Dry hanging room for smoked sausage.
Cooler for sausage other than smoked sausage.
Curing Meats.—In certain sausages cured meats are a necessity,

in others they can be used without detriment, while there still remain
others in which cured meats are positively bad. Therefore exactly
how to handle the meats so as to have them available for use in
proper form becomes a matter of concern. Formerly when
preservatives, like borax and boracic acid could be used, many
products were put into cure with a preservative of saltpetre, borax,
boracic acid, sugar and salt, and kept sufficiently mild to be
acceptable, but the pure food laws abolishing the use of
preservatives have changed conditions. The result is that sausage
products should be cured like hams and frozen when cured or frozen
before curing and carried in this form until wanted. However, quite a
large space should be provided near the sausage department for
curing products.
Cooler for Ground Meats.
—In close proximity to the sausage room is provided a shelving
room arranged for placing ground fresh spiced meats for curing
processes; spiced completely and ready for stuffing. Meats can be
held in this manner and stuffed, smoked, cooked and packed rapidly
as the exigencies of shipping demand. This enables the maker to
shorten the time between himself and the consumer, most necessary
for a successful business.
Grinding and Stuffing Room.—This should be a well lighted and
well ventilated room. Here the grinding equipment and stuffing tables
are located. The principal equipment needed are “Enterprise” type
grinders, silent cutters, mixer and back fat choppers, with a spice
mill.
FIG. 159.—DEVICE FOR RUNNING SAUSAGE INTO SMOKE HOUSE.
Mechanical cutters are expected to be an aid to teeth and

therefore they should be made to perform their part by being fitted
with sharp knives to do the cutting. Choppers are only necessary in
making summer sausage although some manufacturers prefer to
rock their fancy breakfast sausage.
Smoke Houses.—The management of sausage smoke houses
for ordinary sausage vary considerably. Figs. 159 and 160 with
description illustrate one of the sliding carriage types. The smoke
house carriage is made of angle irons and is run on a track which is
supported by vertical columns. The outside tracks can be raised to
any height desired to match the tracks in the smoke house. The
sausage is hung on this carriage and run into the smoke house, and
when it is sufficiently smoked the carriage can be drawn out on the
movable rails, the sausages taken off, others put in their place and
the operation repeated.
This device necessitates a carriage for each set of tracks in the
smoke house. Later practice tends toward the use of some sort of
cage—operated from overhead rails; the sausage department being
arranged with rails near to the stuffing tables. Extending to the
smoke houses, thence to the cook boxes and on to the hanging
rooms. This arrangement is so familiar that it does not require further
description. The tracks are made in such form and size as to fit the
houses and usually conform to one of the types illustrated.
FIG. 160.—DETAIL OF SMOKE HOUSE CARRIAGE.
The modern houses are built of brick, about 54 inches in width,

which will allow, clear of the frame, two to four inches. In depth the
houses vary and can be from ten to sixteen feet. Where possible,
they should be built on a corresponding level to the cook rooms and
grinding rooms, so as to avoid the necessity of using elevators. This
brings the fire pit within a reasonable distance, which is a decided
advantage for high temperature smoke houses.
Smoke house compartments for summer or dried sausage can be
from two to three stories and should be built exclusively of brick, as it
has been shown by numerous experiments with sheet iron and iron
lined houses that these are not a success for smoking all kinds of
sausage. The draft of the house is, of course, regulated by
ventilators at the top.
Better results are obtained by the use of tin clad wood center
doors than by the use of plate iron doors.
FIG. 161.—DIAGRAM SMOKE HOUSE SAUSAGE STACK.
In smoking domestic sausage, it is always preferable to use hard
wood, never to put green or unsmoked sausage into a cold smoke
house, the house should be warmed by first building a fire in it, in
case it has not been recently used. In hot weather or in the summer
time this is not so important, as smoke houses then are sufficiently
warm at all times. In cool weather or during the winter, the smoke
house should either be kept warm by constant usage or by warming
up before using in case the house is empty and has become cold.
The fire should not be over eight feet from the cage.
Cooking Time.—To successfully manufacture sausage it should
be cooked properly. The following schedule gives the time and
temperature of cooking different kinds of sausage, forming the
“Cooking Schedule” referred to in many of the foregoing formulas:
COOKING SCHEDULE FOR SAUSAGE.

Temperature
Time Time degrees
Kind of sausage hours minutes Fahrenheit
Long Bologna ... 30 160
Large Bologna 2 ... 160
Round Bologna ... 20 155
Bag Bologna 2 ... 160
Bologna in weasands ... 45 155
Knoblauch ... 20 160
Leona Bologna long ... 40 155
Leona Bologna large 2 ... 160
Regular Frankfurts ... 7 160
Vienna Frankfurts ... 7 160
High grade Frankfurts ... 7 160
Blood 2 ... 200
Tongue 2 ... 200
Liver ... 30 160
Minced ham 4 ... 150
Berlin ham 2 ... 170
Head cheese ... 45 180
Cooked pressed ham 2 30 180

Download International Economics 13th Edition Carbaugh Test Bank all chapters

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Download International Economics 13th Edition Carbaugh Test Bank all chapters

Uploaded by

Copyright:

Available Formats

International Economics 13th Edition

Carbaugh Test Bank

International Economics 16th Edition Carbaugh Test Bank

International Economics 15th Edition Robert Carbaugh

International Economics 14th Edition Robert Carbaugh

Global Economics 13th Edition Robert Carbaugh Test Bank

International Economics 17th Edition Carbaugh Solutions

International Economics 14th Edition Robert Carbaugh

International Economics 15th Edition Robert Carbaugh

Global Economics 13th Edition Robert Carbaugh Solutions

1. "Risk spreading" is a motive most likely to be served when firms undergo:

10. Most U.S. direct investment abroad occurs in:

22. Multinational enterprises:

23. Firms undertake multinational operations in order to:

24. Multinational enterprises face problems since they:

30. Multinational enterprises:

Figure 9.1. International Joint Venture

Figure 9.2. U.S. Labor Market

46. Critics of U.S. trade and immigration policy maintain that

49. Foreign direct investment typically occurs when

3. Vertical integration occurs if a parent multinational corporation establishes foreign subsidiaries to

6. Most vertical foreign investment, as implemented by multinational corporations, is "forward" in nature

2. What are Mexican maquiladoras?

2. What are the disadvantages of forming joint ventures?

FIG. 158.—FILTER PRESS FOR LARD OR OLEO OIL.

Graining.—After the fats have been washed they should be drawn

Tallow 58° to 65° F.

These and the temperature of the room, however, are subject to

Smoking Meats.—The smoking of meats is an ancient method of

THE TIME REQUIRED TO SOAK MEATS.

3 hours in smoke 107° F.

It should be the aim to have the house at a temperature of 118° F.

CANVASING 1,031 HAMS.

Wrapping Smoked Meats.—Fancy meats, now almost entirely

1,200 pounds floated barytes.

The glue should be cooked and strained through a piece of cloth

1,200 pounds floated barytes.

This is used at a temperature of from 90° to 100° F. As all meats

SHRINKAGE ON DRIED BEEF.

Packages.—The packing of meats for shipment is best done in

Introductory.—There is probably no department where there is

Curing Meats.—In certain sausages cured meats are a necessity,

FIG. 159.—DEVICE FOR RUNNING SAUSAGE INTO SMOKE HOUSE.

Mechanical cutters are expected to be an aid to teeth and

FIG. 160.—DETAIL OF SMOKE HOUSE CARRIAGE.

The modern houses are built of brick, about 54 inches in width,

COOKING SCHEDULE FOR SAUSAGE.

You might also like