Exam 5: International Trade

Discuss the national competitive advantage theory including the four elements of national competitiveness.

The theory of ________ measures a nation's wealth by the living standards of its people.

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

The theories of comparative and absolute advantage assume that specialization in the production of one particular good results in efficiency gains.

The theories of comparative and absolute advantage assume that countries are driven only by the maximization of production and consumption.

Trade in services tends to be relatively more important for the world's richest countries as compared to other nations.

Today, world merchandise exports are around $12 trillion.

Which of the following refers to the purchase, sale, or exchange of goods and services across national borders?

During which stage of the international product life cycle theory does demand rise and remain sustained over a fairly lengthy period of time?

Slower world economic output slows the volume of international trade, and higher output encourages trade.

During which stage of the product life cycle are companies looking for low-cost production bases in developing nations to supply a growing worldwide market?

Comparative advantage theory focuses on which of the following?

The Porter diamond consists of all the following EXCEPT ________.

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

The paradox between predictions of factor proportions theory and actual trade flows is called the ________.

Scenario: Foodland and Drinkland Two countries, Foodland and Drinkland, produce food and drinks. In Foodland, one resource unit produces 20 tons of food and one resource unit produces 10 tons of drinks. In Drinkland, one resource unit produces 12 tons of food and one resource unit produces 24 tons of drinks. Food Drinks Foodland 20 10 Drinkland 12 24 -Which of the following is a true statement about the above scenario?

Given that international trade is not a manufacturing activity, it has no impact on the job creation potential of an economy.

________ countries acquired colonies around the world to serve as sources of inexpensive raw materials and as markets for higher-priced finished goods.

The United States is central Europe's mightiest trading partner.

Scenario: Conquering International Fulfillment Jack Damon, a Boston-based entrepreneur, is determined to not make the same mistakes that hindered his former employer. Jack knows that to expand his international sales he must make some changes to how his orders are filled. -Which of the following is NOT a fulfillment mistake that Jack should try to avoid?