Exam 6: International Trade and Factor-Mobility Theory

Country X brings in a large number of unskilled immigrants to meet its labor needs.Which of the following is the LEAST likely to occur in Country X as a result?

Which of the following BEST supports a nation's decision to implement a strategic trade (industrial)policy?

According to the product life cycle (PLC)theory, production and sales are primarily domestic in the introductory stage because ________.

Which of the following is most likely a basis for a Jamaican natural advantage in international trade?

Which of the following undesirable results will most likely occur for a country running a favorable balance of trade?

All of the following are types of products that are usually exceptions to what is predicted by the product life cycle theory EXCEPT ________.

In this example, assume that both trade and production factors are internationally mobile.Using domestic labor, the labor cost per silicon chip is $.10 in Japan and $.20 in the United States.Using domestic capital, the capital cost per chip is $.10 in Japan and $.05 in the United States.Chip transportation in either direction is $.10.Japanese labor is willing to work in the United States for $.15 per chip including the workers' transport cost.U.S.capital will go to Japan at a cost of $.08 per chip including transaction costs.Which silicon chips will the United States buy?

El Salvador has a population density of about 620 people per square mile and neighboring Honduras a population density of about 115 people per square mile.According to the factor proportions theory of trade, one would expect El Salvador's exports to Honduras to ________.