Question 1

Factor proportions theory states that a country will produce and export those goods that require resources abundantly available within the country.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

During which of the following stages 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 product concept?

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 4

The international product life cycle theory was developed by ________.

Accepted Answer

A) Milton Friedman 
B) Karl Marx 
C) Michael Porter 
D) Raymond Vernon 
A) Milton Friedman 
B) Karl Marx 
C) Michael Porter 
D) Raymond Vernon

Question 5

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

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 6

Better Mousetrap Inc.
Better Mousetrap Inc.is a manufacturing company that sells pest control products.Recently the company launched an innovative mousetrap with a unique design that has been selling well in the U.S.market.Senior Vice President Marc Wallace,even recommended expanding sales overseas in order to increase company revenues.
-Wallace's executive team reviews the stages of the international product life cycle to understand better what to expect when the product is sold overseas.Since there is virtually no export market for the product at present,the product is most likely in which of the following stages of the international product life cycle?

Accepted Answer

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

Question 7

Explain how the theory of absolute advantage conflicts with the theory of mercantilism.

Accepted Answer

The theory of mercantilism conflicts wit

Question 8

Mercantilist countries used to amass wealth by acquiring less-developed territories around the world.

Accepted Answer

A) True 
 B)False

Question 9

According to the Porter diamond,which of the following is an example of an advanced factor?

Accepted Answer

A) labor forces in the nation 
B) technological infrastructure in the nation 
C) climate in the nation 
D) natural resources in the nation 
A) labor forces in the nation 
B) technological infrastructure in the nation 
C) climate in the nation 
D) natural resources in the nation

Question 10

The international product life cycle theory was put forth for ________.

Accepted Answer

A) service goods 
B) abundant resources 
C) manufactured goods 
D) natural resources 
A) service goods 
B) abundant resources 
C) manufactured goods 
D) natural resources

Question 11

Which of the following statements is true regarding the assumptions of the absolute and comparative advantage theories?

Accepted Answer

A) The theories assume that there are many number of countries engaged in the production and consumption of just two goods. 
B) The theories assume that there are additional costs for transporting traded goods from one country to another. 
C) The theories assume labor to be the only resource used in the production process. 
D) The theories assume that specialization in the production of one particular good results in gains in efficiency. 
A) The theories assume that there are many number of countries engaged in the production and consumption of just two goods. 
B) The theories assume that there are additional costs for transporting traded goods from one country to another. 
C) The theories assume labor to be the only resource used in the production process. 
D) The theories assume that specialization in the production of one particular good results in gains in efficiency.

Question 12

If these two countries were to gain from trading with each other,this would support the notion that trade is a ________.

Accepted Answer

A) zero-sum game 
B) negative experience 
C) positive-sum game 
D) form of economic nationalism 
A) zero-sum game 
B) negative experience 
C) positive-sum game 
D) form of economic nationalism

Question 13

Factor proportions theory states that factors in great supply relative to demand will be more costly than factors in short supply relative to demand.

Accepted Answer

A) True 
 B)False

Question 14

Explain the theory of comparative advantage using an example,and describe its assumptions and limitations.

Accepted Answer

An English economist named David Ricardo

Question 15

National competitive advantage theory states that a nation's competitiveness in an industry depends on ________.

Accepted Answer

A) the capacity of companies to create barriers to entry 
B) the capacity of the industry to innovate and upgrade 
C) the availability of government subsidies for industry development 
D) the availability of cheap factors of production in the nation 
A) the capacity of companies to create barriers to entry 
B) the capacity of the industry to innovate and upgrade 
C) the availability of government subsidies for industry development 
D) the availability of cheap factors of production in the nation

Question 16

Most of the world merchandise trade is composed of trade in ________.

Accepted Answer

A) minerals 
B) services 
C) manufactured goods 
D) agricultural products 
A) minerals 
B) services 
C) manufactured goods 
D) agricultural products

Question 17

Wallace expects that markets abroad will soon become fully aware of the existence of the product and its benefits.Which of the following life cycle stages will the product be a part of during that period?

Accepted Answer

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

Question 18

Most of the world's merchandise trade is composed of trade in agricultural products.

Accepted Answer

A) True 
 B)False

Question 19

Companies that belong to a nation's internationally competitive industries exist in isolation from supporting industries.

Accepted Answer

A) True 
 B)False

Question 20

The ability of a nation to produce a good more efficiently than any other nation is called its comparative advantage.

Accepted Answer

A) True 
 B)False

Factor proportions theory states that a country will produce and export those goods that require resources abundantly available within the country.

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

During which of the following stages 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 product concept?

The international product life cycle theory was developed by ________.

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

Explain how the theory of absolute advantage conflicts with the theory of mercantilism.

Mercantilist countries used to amass wealth by acquiring less-developed territories around the world.

According to the Porter diamond,which of the following is an example of an advanced factor?

The international product life cycle theory was put forth for ________.

Which of the following statements is true regarding the assumptions of the absolute and comparative advantage theories?

If these two countries were to gain from trading with each other,this would support the notion that trade is a ________.

Factor proportions theory states that factors in great supply relative to demand will be more costly than factors in short supply relative to demand.

Explain the theory of comparative advantage using an example,and describe its assumptions and limitations.

National competitive advantage theory states that a nation's competitiveness in an industry depends on ________.

Most of the world merchandise trade is composed of trade in ________.

Wallace expects that markets abroad will soon become fully aware of the existence of the product and its benefits.Which of the following life cycle stages will the product be a part of during that period?

Most of the world's merchandise trade is composed of trade in agricultural products.

Companies that belong to a nation's internationally competitive industries exist in isolation from supporting industries.

The ability of a nation to produce a good more efficiently than any other nation is called its comparative advantage.

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

Factor proportions theory states that a country will produce and export those goods that require resources abundantly available within the country.

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

During which of the following stages 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 product concept?

The international product life cycle theory was developed by ________.

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

Explain how the theory of absolute advantage conflicts with the theory of mercantilism.

Mercantilist countries used to amass wealth by acquiring less-developed territories around the world.

According to the Porter diamond,which of the following is an example of an advanced factor?

The international product life cycle theory was put forth for ________.

Which of the following statements is true regarding the assumptions of the absolute and comparative advantage theories?

If these two countries were to gain from trading with each other,this would support the notion that trade is a ________.

Factor proportions theory states that factors in great supply relative to demand will be more costly than factors in short supply relative to demand.

Explain the theory of comparative advantage using an example,and describe its assumptions and limitations.

National competitive advantage theory states that a nation's competitiveness in an industry depends on ________.

Most of the world merchandise trade is composed of trade in ________.

Wallace expects that markets abroad will soon become fully aware of the existence of the product and its benefits.Which of the following life cycle stages will the product be a part of during that period?

Most of the world's merchandise trade is composed of trade in agricultural products.

Companies that belong to a nation's internationally competitive industries exist in isolation from supporting industries.

The ability of a nation to produce a good more efficiently than any other nation is called its comparative advantage.

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