Question 1

A footloose industry is one in which the product:

Accepted Answer

A)  gains weight in processing 
B)  loses weight in processing 
C)  does not change weight in processing 
D)  could increase, decrease, or have no change in weight in processing. 
A)  gains weight in processing 
B)  loses weight in processing 
C)  does not change weight in processing 
D)  could increase, decrease, or have no change in weight in processing.

Question 2

Transport costs:

Accepted Answer

A)  increase the price in the importing country. 
B)  increase the price in the exporting country. 
C)  prevent international trade. 
D)  increase international trade. 
A)  increase the price in the importing country. 
B)  increase the price in the exporting country. 
C)  prevent international trade. 
D)  increase international trade.

Question 3

The intra-industry trade index measures the magnitude of a nation's

Accepted Answer

A)  product life cycle 
B)  comparative advantage 
C)  economies of scale 
D)  trade in differentiated products 
A)  product life cycle 
B)  comparative advantage 
C)  economies of scale 
D)  trade in differentiated products

Question 4

Intra-industry trade takes place:

Accepted Answer

A)  because products are homogeneous 
B)  in order to take advantage of economies of scale 
C)  because perfect competition is the prevalent form of market organization 
D)  because there is technological change. 
A)  because products are homogeneous 
B)  in order to take advantage of economies of scale 
C)  because perfect competition is the prevalent form of market organization 
D)  because there is technological change.

Question 5

The theory that a nation exports those products for which a large domestic market exists was advanced by:

Accepted Answer

A)  Linder 
B)  Vernon 
C)  Leontief 
D)  Ohlin 
A)  Linder 
B)  Vernon 
C)  Leontief 
D)  Ohlin

Question 6

Increasing returns to scale means that

Accepted Answer

A)  doubling all inputs leads to a more than proportional increase in output. 
B)  doubling all inputs leads to a proportional increase in output. 
C)  doubling all inputs leads to a less than proportional increase in output. 
D)  doubling all inputs leads to a decrease in output. 
A)  doubling all inputs leads to a more than proportional increase in output. 
B)  doubling all inputs leads to a proportional increase in output. 
C)  doubling all inputs leads to a less than proportional increase in output. 
D)  doubling all inputs leads to a decrease in output.

Question 7

If transportation costs are imposed on an exporting nation the ultimate burden of paying for those costs will fall on

Accepted Answer

A)  only the exporting nation 
B)  only the importing nation 
C)  the cost will be split 50/50 between the importing and exporting nation 
D)  the costs will be split between the importing and exporting nation based on their supply and demand elasticity 
A)  only the exporting nation 
B)  only the importing nation 
C)  the cost will be split 50/50 between the importing and exporting nation 
D)  the costs will be split between the importing and exporting nation based on their supply and demand elasticity

Question 8

International trade can be based on economies of scale even if both nations have identical:

Accepted Answer

A)  factor endowments 
B)  tastes 
C)  technology 
D)  all of the above 
A)  factor endowments 
B)  tastes 
C)  technology 
D)  all of the above

Question 9

How do differing environmental standards between countries affect international trade,and why can this create problems?

Accepted Answer

Since countries may have different level

Question 10

a)Explain why the Heckscher-Ohlin trade model needs to be extended.
b)Indicate in what important ways the Heckscher-Ohlin trade model can be extended.
c)Explain what is meant by differentiated products and intra-industry trade.

Accepted Answer

a)The Heckscher-Ohlin trade model needs

A footloose industry is one in which the product:

Transport costs:

The intra-industry trade index measures the magnitude of a nation's

Intra-industry trade takes place:

The theory that a nation exports those products for which a large domestic market exists was advanced by:

Increasing returns to scale means that

If transportation costs are imposed on an exporting nation the ultimate burden of paying for those costs will fall on

International trade can be based on economies of scale even if both nations have identical:

How do differing environmental standards between countries affect international trade,and why can this create problems?

a)Explain why the Heckscher-Ohlin trade model needs to be extended. b)Indicate in what important ways the Heckscher-Ohlin trade model can be extended. c)Explain what is meant by differentiated products and intra-industry trade.

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, offer Curves, and the Terms of Trade

Factor Endowments and the Heckscherohlin Theory

Economic Growth and International Trade

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

International Resource Movements and Multinational Corporations

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

Open Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

The International Monetary System: Past, present, and Future Answers to Selected Problems on Web

Filters

Exam 6: Economies of Scale, imperfect Competition, and International Trade

A footloose industry is one in which the product:

Transport costs:

The intra-industry trade index measures the magnitude of a nation's

Intra-industry trade takes place:

The theory that a nation exports those products for which a large domestic market exists was advanced by:

Increasing returns to scale means that

If transportation costs are imposed on an exporting nation the ultimate burden of paying for those costs will fall on

International trade can be based on economies of scale even if both nations have identical:

How do differing environmental standards between countries affect international trade,and why can this create problems?

a)Explain why the Heckscher-Ohlin trade model needs to be extended. b)Indicate in what important ways the Heckscher-Ohlin trade model can be extended. c)Explain what is meant by differentiated products and intra-industry trade.

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, offer Curves, and the Terms of Trade

Factor Endowments and the Heckscherohlin Theory

Economic Growth and International Trade

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

International Resource Movements and Multinational Corporations

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

Open Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

The International Monetary System: Past, present, and Future Answers to Selected Problems on Web

Filters