Question 1

The necessity of absolute differences in costs of international trade is associated with

Accepted Answer

A) Comparative advantage theory 
B) Opportunity Cost theory 
C) Absolute advantage theory 
D) Theory of Reciprocal Demand 
A) Comparative advantage theory 
B) Opportunity Cost theory 
C) Absolute advantage theory 
D) Theory of Reciprocal Demand

Question 2

Terms of trade expresses the relationship between

Accepted Answer

A) Balance of payments between two countries 
B) The export price and import price of a country 
C) Gains and loss of a country in international trade 
D) None of the above 
A) Balance of payments between two countries 
B) The export price and import price of a country 
C) Gains and loss of a country in international trade 
D) None of the above

Question 3

The factor price ratio(PC/PL)A < (PC/PL)B of countries A & B implies

Accepted Answer

A) Country A is abundant in labour 
B) Country B is abundant in capital 
C) Country B is abundant in labour 
D) Country A is abundant in capital 
A) Country A is abundant in labour 
B) Country B is abundant in capital 
C) Country B is abundant in labour 
D) Country A is abundant in capital

Question 4

International trade refers to

Accepted Answer

A) Domestic trade 
B) Inter-regional trade 
C) Trade between two nations or countries 
D) Internal trade 
A) Domestic trade 
B) Inter-regional trade 
C) Trade between two nations or countries 
D) Internal trade

Question 5

The H-O theory of international trade was propounded by Ohlin in

Accepted Answer

A) 1932 
B) 1933 
C) 1934 
D) 1935 
A) 1932 
B) 1933 
C) 1934 
D) 1935

The necessity of absolute differences in costs of international trade is associated with

Terms of trade expresses the relationship between

The factor price ratio(PC/PL)A < (PC/PL)B of countries A & B implies

International trade refers to

The H-O theory of international trade was propounded by Ohlin in

Theories and Concepts in International Trade

Understanding Terms of Trade and Trade Gains Theory

Understanding Tariffs and Trade Policies

Understanding Tariffs and Quotas in International Trade

International Finance and Balance of Payments

Indias Balance of Payments and Foreign Trade: Part A

Indias Balance of Payments and Foreign Trade: Part B

Filters

Exam 2: Understanding International Trade Theories and Terms

The necessity of absolute differences in costs of international trade is associated with

Terms of trade expresses the relationship between

The factor price ratio(PC/PL)A < (PC/PL)B of countries A & B implies

International trade refers to

The H-O theory of international trade was propounded by Ohlin in

Theories and Concepts in International Trade

Understanding Terms of Trade and Trade Gains Theory

Understanding Tariffs and Trade Policies

Understanding Tariffs and Quotas in International Trade

International Finance and Balance of Payments

Indias Balance of Payments and Foreign Trade: Part A

Indias Balance of Payments and Foreign Trade: Part B

Filters