Exam 1: Theories and Concepts in International Trade

According to physical criterion of the H-O theory of trade, a country is said to be relatively capital abundant if and only if

According to comparative advantage theory

The importance of international trade includes

According to classical view, one of the main difference between inter-regional and international trade is

According to the Heckscher-Ohlin theory of trade, the most important cause of difference in relative commodity prices and trade between nations is a difference in

Adam Smith's theory of international trade is based on

The production possibility curve under increasing opportunity costs is concave to the origin because

Among the difference between inter-regional and international trade, the reason for international factor immobility includes

The basic of international trade according to Ricardo is that

Under constant opportunity cost, the production possibility curve is

According to the theory of comparative advantage, countries gain from trade, because

Haberler's Opportunity cost theory explains the doctrine of comparative cost in terms of

The theory of comparative advantage in international trade was propounded by

In Ricardian theory of international trade, the only factor of production is

According to Adam Smith, diversification of labour at the international level requires the

Adam Smith favoured

David Ricardo believed that the international trade is governed by

The price criterion if the H-O theory of trade lays down that

The basics and gains from international trade under the theory of opportunity cost is determined by

Heckscher-Ohlin theory of trade is based on