Question 1

The Leontief paradox describes evidence ________.

Accepted Answer

A) in support of the predictions of the mercantilist theory 
B) contrary to the predictions of the factor proportions theory 
C) that the assumptions of international product life cycle theory are invalid 
D) that the assumptions of the new trade theory are invalid 
A) in support of the predictions of the mercantilist theory 
B) contrary to the predictions of the factor proportions theory 
C) that the assumptions of international product life cycle theory are invalid 
D) that the assumptions of the new trade theory are invalid

Question 2

Which element of national competitive advantage theory divides resources into two groups: basic and advanced?

Accepted Answer

A) demand conditions 
B) factor conditions 
C) related and supporting industries 
D) firm,strategy,structure,and rivalry 
A) demand conditions 
B) factor conditions 
C) related and supporting industries 
D) firm,strategy,structure,and rivalry

Question 3

Which of the following statements is true of the above scenario?

Accepted Answer

A) Foodland has a comparative advantage in producing drinks. 
B) Drinkland cannot trade with Foodland because trade is too expensive. 
C) Drinkland has an absolute advantage in producing drinks. 
D) Foodland should stop producing food and just produce drinks. 
A) Foodland has a comparative advantage in producing drinks. 
B) Drinkland cannot trade with Foodland because trade is too expensive. 
C) Drinkland has an absolute advantage in producing drinks. 
D) Foodland should stop producing food and just produce drinks.

Question 4

In the ________ of the international product life cycle,competition from other companies selling similar products pressures companies to lower prices in order to maintain sales levels.

Accepted Answer

A) product decline stage 
B) new product stage 
C) maturing product stage 
D) standardized product stage 
A) product decline stage 
B) new product stage 
C) maturing product stage 
D) standardized product stage

Question 5

An absolute advantage is the economic and strategic advantage gained by being the first company to enter an industry.

Accepted Answer

A) True 
 B)False

Question 6

The new trade theory is mainly at odds with the ________ theory.

Accepted Answer

A) international product life cycle 
B) comparative advantage 
C) national competitive advantage 
D) factor proportions 
A) international product life cycle 
B) comparative advantage 
C) national competitive advantage 
D) factor proportions

Question 7

Another term for neomercantilism is ________.

Accepted Answer

A) new trade 
B) free trade 
C) economic nationalism 
D) political nationalism 
A) new trade 
B) free trade 
C) economic nationalism 
D) political nationalism

Question 8

Discuss the volume of international trade,and explain the role government and chance play in the growth of international trade.

Accepted Answer

The value and volume of international tr

Question 9

Discuss the three essential pillars of the theory of mercantilism.

Accepted Answer

The trade theory that nations should acc

Question 10

Which of the following was a prominent mercantilist nation?

Accepted Answer

A) U)S. 
B) China 
C) Britain 
D) Japan 
A) U)S. 
B) China 
C) Britain 
D) Japan

Question 11

When a country's currency is weak relative to other nations,domestic products are more expensive than imports.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true about the theory of absolute advantage?

Accepted Answer

A) The theory accepts the mercantilist idea that international trade is a zero-sum game. 
B) The theory approves the objective of national governments to acquire wealth through restrictive trade policies. 
C) The theory emphasizes that nations should open their doors to trade so that people can obtain more goods at cheaper rates. 
D) The theory measures a nation's wealth by how much gold and silver it has on reserve. 
A) The theory accepts the mercantilist idea that international trade is a zero-sum game. 
B) The theory approves the objective of national governments to acquire wealth through restrictive trade policies. 
C) The theory emphasizes that nations should open their doors to trade so that people can obtain more goods at cheaper rates. 
D) The theory measures a nation's wealth by how much gold and silver it has on reserve.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

How does the theory of comparative advantage differ from the factor proportions theory? Include a description of the factor proportions theory in your answer.

Accepted Answer

An English economist named David Ricardo

Question 15

The importance of trade for a nation can be measured by ________.

Accepted Answer

A) examining the amount of wealth acquired by the national government through restrictive trade policies 
B) the living standards of people involved in only trade activities 
C) the number of acquired territories the nation has that serves as sources of inexpensive raw materials 
D) examining the volume of its trade relative to its total output 
A) examining the amount of wealth acquired by the national government through restrictive trade policies 
B) the living standards of people involved in only trade activities 
C) the number of acquired territories the nation has that serves as sources of inexpensive raw materials 
D) examining the volume of its trade relative to its total output

Question 16

Explain mercantilism.What were its major flaws?

Accepted Answer

The trade theory that nations should acc

Question 17

To complete his business bookkeeping work each month,a business owner spends about 20 hours and in the process,has to give up $900 in income.If he hired a bookkeeper to do the work,the job would be completed in 15 hours and would cost him $600.Should the owner hire the bookkeeper or continue to do the work himself?

Accepted Answer

A) He should hire the bookkeeper because the bookkeeper has an absolute advantage in completing the books. 
B) He should do the bookkeeping himself because he has an absolute advantage in completing the books. 
C) He should hire the bookkeeper only if the bookkeeper agrees to give him a discount on the service price. 
D) He should hire the bookkeeper only if the bookkeeper is willing to complete the work in 12 hours. 
A) He should hire the bookkeeper because the bookkeeper has an absolute advantage in completing the books. 
B) He should do the bookkeeping himself because he has an absolute advantage in completing the books. 
C) He should hire the bookkeeper only if the bookkeeper agrees to give him a discount on the service price. 
D) He should hire the bookkeeper only if the bookkeeper is willing to complete the work in 12 hours.

Question 18

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

Accepted Answer

A) land 
B) labor 
C) capital 
D) equipment 
A) land 
B) labor 
C) capital 
D) equipment

Question 19

The theory of comparative advantage was proposed by ________.

Accepted Answer

A) David Ricardo 
B) Adam Smith 
C) Bertil Ohlin 
D) Raymond Vernon 
A) David Ricardo 
B) Adam Smith 
C) Bertil Ohlin 
D) Raymond Vernon

Question 20

Explain the factor proportions theory and discuss why it is at odds with the new trade theory.

Accepted Answer

In the early 1900s,an international trad

The Leontief paradox describes evidence ________.

Which element of national competitive advantage theory divides resources into two groups: basic and advanced?

Which of the following statements is true of the above scenario?

In the ________ of the international product life cycle,competition from other companies selling similar products pressures companies to lower prices in order to maintain sales levels.

An absolute advantage is the economic and strategic advantage gained by being the first company to enter an industry.

The new trade theory is mainly at odds with the ________ theory.

Another term for neomercantilism is ________.

Discuss the volume of international trade,and explain the role government and chance play in the growth of international trade.

Discuss the three essential pillars of the theory of mercantilism.

Which of the following was a prominent mercantilist nation?

When a country's currency is weak relative to other nations,domestic products are more expensive than imports.

Which of the following is true about the theory of absolute advantage?

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

How does the theory of comparative advantage differ from the factor proportions theory? Include a description of the factor proportions theory in your answer.

The importance of trade for a nation can be measured by ________.

Explain mercantilism.What were its major flaws?

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

The theory of comparative advantage was proposed by ________.

Explain the factor proportions theory and discuss why it is at odds with the new trade theory.

Globalization

Cross-Cultural Business

Political Economy and Ethics

Economic Development of Nations

Political Economy of Trade

Foreign Direct Investment

Regional Economic Integration

International Financial Markets

International Monetary System

International Strategy and Organization

Analyzing International Opportunities

Selecting and Managing Entry Modes

Developing and Marketing Products

Managing International Operations

Hiring and Managing Employees

Filters

Exam 5: International Trade Theory

The Leontief paradox describes evidence ________.

Which element of national competitive advantage theory divides resources into two groups: basic and advanced?

Which of the following statements is true of the above scenario?

In the ________ of the international product life cycle,competition from other companies selling similar products pressures companies to lower prices in order to maintain sales levels.

An absolute advantage is the economic and strategic advantage gained by being the first company to enter an industry.

The new trade theory is mainly at odds with the ________ theory.

Another term for neomercantilism is ________.

Discuss the volume of international trade,and explain the role government and chance play in the growth of international trade.

Discuss the three essential pillars of the theory of mercantilism.

Which of the following was a prominent mercantilist nation?

When a country's currency is weak relative to other nations,domestic products are more expensive than imports.

Which of the following is true about the theory of absolute advantage?

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

How does the theory of comparative advantage differ from the factor proportions theory? Include a description of the factor proportions theory in your answer.

The importance of trade for a nation can be measured by ________.

Explain mercantilism.What were its major flaws?

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

The theory of comparative advantage was proposed by ________.

Explain the factor proportions theory and discuss why it is at odds with the new trade theory.

Globalization

Cross-Cultural Business

Political Economy and Ethics

Economic Development of Nations

Political Economy of Trade

Foreign Direct Investment

Regional Economic Integration

International Financial Markets

International Monetary System

International Strategy and Organization

Analyzing International Opportunities

Selecting and Managing Entry Modes

Developing and Marketing Products

Managing International Operations

Hiring and Managing Employees

Filters