Exam 5: International Trade

Today, trade between most nations is characterized by a certain degree of interdependency.

Around half of all exports in Asia are intra-regional.

Explain the international product life cycle theory including its several stages.

The U.S. Department of Commerce estimates that for every $1 billion increase in exports, ________ jobs are created in the United States.

The ________ theory destroys the mercantilist notion that international trade is a zero-sum game.

Over time, trade has consistently grown more slowly than world output.

In the ________ stage of the international product life cycle, the high purchasing power and demand of buyers in an industrialized country spur a company to design and introduce a new product concept.

Which element of national competitive advantage theory refers to resources as basic or advanced?

________ is the condition that results when the value of a nation's exports is greater than the value of its imports.

U.S. jobs that are export-dependent typically pay ________ than jobs that are not export-dependent.

During which stage of the international product life cycle theory does high purchasing power and buyer demand in an industrialized nation encourage a company to design and introduce a new product concept?

In the context of international trade, isolationism is generally considered undesirable.

The trade theory that nations should accumulate financial wealth, usually in the form of gold, by encouraging exports and discouraging imports is called ________.

China dominates the rest of the world in the export of both merchandise and commercial services.

According to mercantilism, accumulation of national wealth depended on ________.

Merchandise trade between low- and middle-income nations accounts for only about 6 percent of total world trade.

Both absolute and comparative advantage theories assume that ________ is the only resource used in the production process.

Nations following the theory of ________ believed that the world's wealth was limited and that a nation could increase its share of the pie only at the expense of its neighbors.

________ record the destination of exports, the source of imports, and the physical quantities and values of goods crossing borders.

Who proposed the theory of absolute advantage?