Exam 5: Trading Internationally

In the context of NTBs,VERs are government payments to domestic firms.

The basic concept of protectionism and mercantilism is the same.

Which theory is based on the notion that competitive advantage is dependant on the four interacting aspects of factor endowments,domestic demand,firm strategy,and related and supporting industries?

What are the few factors that determine the success and failure of firms' exports around the globe?

Protectionism is similar to mercantilism as they both advocated _____.

Trade deficit occurs when a nation exports more than it imports.

Which of the following is a modern trade theory?

The product life cycle theory explains patterns of trade based on factor endowments.

_____ are tariffs levied on imports sold below costs to drive domestic firms out of business.

By trying to be self-sufficient and producing a wide range of goods,_____ policies reduce the wealth of a nation in the long run.

By trying to be self-sufficient and producing a wide range of goods,mercantilist policies help sustain the wealth of a nation in the long run.

The theory of absolute advantage is categorized as a classical theory of international trade.

Which of the following trade theories divides the nations of the world into three categories?

In the context of NTBs,administrative policies require a certain proportion of the value of the goods made in one country to originate from that country.

The theory of national competitive advantage of industries does not take domestic demand conditions into account.

The Heckscher-Ohlin theory proposed that nations will develop comparative advantage based on their locally abundant factors.

Briefly explain the classical theory of mercantilism.

The _____ theory viewed international trade as a zero-sum game.