Question 1

Briefly explain the strengths and weaknesses of the absolute advantage and comparative advantage trade theories.

Accepted Answer

The economic advantage one nation enjoys

Question 2

The Heckscher-Ohlin theory proposed that nations will develop comparative advantage based on their locally abundant factors.

Accepted Answer

A) True 
 B)False

Question 3

Factor endowment is _____.

Accepted Answer

A)  the amount of change that patterns of trade undergo over time 
B)  the degree to which the government allows free trade to exist in its international trade 
C)  the extent to which different countries possess various factors of production 
D)  the cost of pursuing one activity at the expense of another given alternative activity 
A)  the amount of change that patterns of trade undergo over time 
B)  the degree to which the government allows free trade to exist in its international trade 
C)  the extent to which different countries possess various factors of production 
D)  the cost of pursuing one activity at the expense of another given alternative activity

Question 4

_____ are rules stipulating that a certain proportion of the value of the goods made in one country must originate from that country.

Accepted Answer

A)  Voluntary export restraints 
B)  Local content requirements 
C)  Import quotas 
D)  Trade embargoes 
A)  Voluntary export restraints 
B)  Local content requirements 
C)  Import quotas 
D)  Trade embargoes

Question 5

In which of the following ways is the theory of comparative advantage linked to the Heckscher-Ohlin theory?

Accepted Answer

A)  Sustainability of wealth in the short run 
B)  Dynamic changes in the patterns of trade over time 
C)  Dependency on a nation's locally available abundant factors 
D)  Extent to which government influences international trade 
A)  Sustainability of wealth in the short run 
B)  Dynamic changes in the patterns of trade over time 
C)  Dependency on a nation's locally available abundant factors 
D)  Extent to which government influences international trade

Question 6

Briefly explain the classical theory of mercantilism.

Accepted Answer

Mercantilism is a theory that suggests t

Question 7

Which of the following is true of voluntary export restraints?

Accepted Answer

A)  It is an extra tax imposed by a country on its exports. 
B)  It is an example of a tariff barrier. 
C)  It is a government payment to domestic firms. 
D)  It is an export quota levied by a country on the quantity of its exports. 
A)  It is an extra tax imposed by a country on its exports. 
B)  It is an example of a tariff barrier. 
C)  It is a government payment to domestic firms. 
D)  It is an export quota levied by a country on the quantity of its exports.

Question 8

The theory of comparative advantage _____.

Accepted Answer

A)  reduces the wealth of the nation in the short run 
B)  provides direct policy advice 
C)  explains patterns of trade based on factor endowments 
D)  was the first theory to incorporate dynamic changes in patterns of trade 
A)  reduces the wealth of the nation in the short run 
B)  provides direct policy advice 
C)  explains patterns of trade based on factor endowments 
D)  was the first theory to incorporate dynamic changes in patterns of trade

Question 9

Which theory is based on the notion that competitive advantage is dependent on the four interacting aspects of factor endowments,domestic demand,firm strategy,and related and supporting industries?

Accepted Answer

A)  Strategic trade theory 
B)  Product life cycle theory 
C)  Comparative advantage theory 
D)  National competitive advantage of industries theory 
A)  Strategic trade theory 
B)  Product life cycle theory 
C)  Comparative advantage theory 
D)  National competitive advantage of industries theory

Question 10

Which of the following is a classical theory of international trade?

Accepted Answer

A)  Comparative advantage theory 
B)  Product life cycle theory 
C)  Strategic trade theory 
D)  National competitive advantage of industries theory 
A)  Comparative advantage theory 
B)  Product life cycle theory 
C)  Strategic trade theory 
D)  National competitive advantage of industries theory

Question 11

Deadweight costs occur in an economy as a result of VER.

Accepted Answer

A) True 
 B)False

Question 12

The strategic trade theory was mainly proposed for low capital-investment industries.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following assumptions are present in the classical theories of international trade?

Accepted Answer

A)  Different produces have different product life cycles 
B)  Transportation costs should underpin foreign trade 
C)  Resource mobility is not easy to achieve 
D)  No complications in foreign exchange transactions 
A)  Different produces have different product life cycles 
B)  Transportation costs should underpin foreign trade 
C)  Resource mobility is not easy to achieve 
D)  No complications in foreign exchange transactions

Question 14

Strategic trade theory advocates mercantilist policy for all industries.

Accepted Answer

A) True 
 B)False

Question 15

_____ are tariffs levied on imports sold below costs to drive domestic firms out of business.

Accepted Answer

A)  Antidumping duties 
B)  Import quotas 
C)  Local content requirements 
D)  Voluntary export requirements 
A)  Antidumping duties 
B)  Import quotas 
C)  Local content requirements 
D)  Voluntary export requirements

Question 16

Trade embargoes are a means of trade intervention.

Accepted Answer

A) True 
 B)False

Question 17

Discuss the economic arguments against free trade.

Accepted Answer

The oldest and most frequently used econ

Question 18

In the context of NTBs,administrative policies require a certain proportion of the value of the goods made in one country to originate from that country.

Accepted Answer

A) True 
 B)False

Question 19

In the context of NTBs,_____ are bureaucratic rules that make it harder to import foreign goods.

Accepted Answer

A)  VERs 
B)  administrative policies 
C)  local content requirements 
D)  deregulation policies 
A)  VERs 
B)  administrative policies 
C)  local content requirements 
D)  deregulation policies

Question 20

Discuss the characteristics of the modern trade theories.

Accepted Answer

The product life cycle theory accounts f

Briefly explain the strengths and weaknesses of the absolute advantage and comparative advantage trade theories.

The Heckscher-Ohlin theory proposed that nations will develop comparative advantage based on their locally abundant factors.

Factor endowment is _____.

_____ are rules stipulating that a certain proportion of the value of the goods made in one country must originate from that country.

In which of the following ways is the theory of comparative advantage linked to the Heckscher-Ohlin theory?

Briefly explain the classical theory of mercantilism.

Which of the following is true of voluntary export restraints?

The theory of comparative advantage _____.

Which theory is based on the notion that competitive advantage is dependent on the four interacting aspects of factor endowments,domestic demand,firm strategy,and related and supporting industries?

Which of the following is a classical theory of international trade?

Deadweight costs occur in an economy as a result of VER.

The strategic trade theory was mainly proposed for low capital-investment industries.

Which of the following assumptions are present in the classical theories of international trade?

Strategic trade theory advocates mercantilist policy for all industries.

_____ are tariffs levied on imports sold below costs to drive domestic firms out of business.

Trade embargoes are a means of trade intervention.

Discuss the economic arguments against free trade.

In the context of NTBs,administrative policies require a certain proportion of the value of the goods made in one country to originate from that country.

In the context of NTBs,_____ are bureaucratic rules that make it harder to import foreign goods.

Discuss the characteristics of the modern trade theories.

Globalizing Business

Understanding Formal Institutions: Politics, laws, and Economics

Emphasizing Informal Institutions: Cultures, ethics, and Norms

Leveraging Resources and Capabilities

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,structuring,and Learning Around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Financing and Governing the Corporation Globally

Managing Corporate Social Responsibility Globally

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Exam 5: Trading Internationally

Briefly explain the strengths and weaknesses of the absolute advantage and comparative advantage trade theories.

The Heckscher-Ohlin theory proposed that nations will develop comparative advantage based on their locally abundant factors.

Factor endowment is _____.

_____ are rules stipulating that a certain proportion of the value of the goods made in one country must originate from that country.

In which of the following ways is the theory of comparative advantage linked to the Heckscher-Ohlin theory?

Briefly explain the classical theory of mercantilism.

Which of the following is true of voluntary export restraints?

The theory of comparative advantage _____.

Which theory is based on the notion that competitive advantage is dependent on the four interacting aspects of factor endowments,domestic demand,firm strategy,and related and supporting industries?

Which of the following is a classical theory of international trade?

Deadweight costs occur in an economy as a result of VER.

The strategic trade theory was mainly proposed for low capital-investment industries.

Which of the following assumptions are present in the classical theories of international trade?

Strategic trade theory advocates mercantilist policy for all industries.

_____ are tariffs levied on imports sold below costs to drive domestic firms out of business.

Trade embargoes are a means of trade intervention.

Discuss the economic arguments against free trade.

In the context of NTBs,administrative policies require a certain proportion of the value of the goods made in one country to originate from that country.

In the context of NTBs,_____ are bureaucratic rules that make it harder to import foreign goods.

Discuss the characteristics of the modern trade theories.

Globalizing Business

Understanding Formal Institutions: Politics, laws, and Economics

Emphasizing Informal Institutions: Cultures, ethics, and Norms

Leveraging Resources and Capabilities

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,structuring,and Learning Around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Financing and Governing the Corporation Globally

Managing Corporate Social Responsibility Globally

Filters