Question 1

Some of the arguments made by the product life-cycle theory seem ethnocentric and increasingly dated when viewed from an Asian or European perspective.

Accepted Answer

A) True 
 B)False

Question 2

Identify the theory that predicts that countries will export those goods that make intensive use of factors that are locally abundant.

Accepted Answer

A)  Theory of comparative advantage 
B)  Ricardo theory 
C)  New trade theory 
D)  Heckscher-Ohlin theory 
A)  Theory of comparative advantage 
B)  Ricardo theory 
C)  New trade theory 
D)  Heckscher-Ohlin theory

Question 3

What are the sources of economies of scale?

Accepted Answer

Economies of scale are unit cost reducti

Question 4

Diminishing returns to specialization occurs when ____.

Accepted Answer

A)  each additional unit is produced with lesser number of laborers 
B)  a nation's gross domestic product declines for a few years 
C)  production possibility frontier appears as a rectangle 
D)  more units of resources are required to produce each additional unit 
A)  each additional unit is produced with lesser number of laborers 
B)  a nation's gross domestic product declines for a few years 
C)  production possibility frontier appears as a rectangle 
D)  more units of resources are required to produce each additional unit

Question 5

Explain the Paul Samuelson's critique.

Accepted Answer

Paul Samuelson's critique looks at what

Question 6

Which of the following terms refers to the unit cost reductions associated with large sized outputs?

Accepted Answer

A)  Absolute advantage of production 
B)  Economies of scale 
C)  Constant marginal returns 
D)  Diminishing marginal returns 
A)  Absolute advantage of production 
B)  Economies of scale 
C)  Constant marginal returns 
D)  Diminishing marginal returns

Question 7

According to Ricardo's theory of comparative advantage, countries shall not produce a good even if they have an absolute advantage in its production.

Accepted Answer

A) True 
 B)False

Question 8

What is the main principle of mercantilism?

Accepted Answer

The main tenet of mercantilism is that i

Question 9

Identify the theory that supports the view that in some cases countries export for the reason that the world market can support only a limited number of firms.

Accepted Answer

A)  Heckscher-Ohlin theory 
B)  Smith's theory 
C)  Ricardo's theory 
D)  New trade theory 
A)  Heckscher-Ohlin theory 
B)  Smith's theory 
C)  Ricardo's theory 
D)  New trade theory

Question 10

Explain the concept of free trade.

Accepted Answer

Free trade refers to a situation where a

Question 11

A rich country improves its productivity by engaging in free trade with a poor country. This situation supports Paul Samuelson's critique.

Accepted Answer

A) True 
 B)False

Question 12

The Heckscher-Ohlin theory predicts that countries will export those goods that make intensive use of factors that are locally scarce.

Accepted Answer

A) True 
 B)False

Question 13

Companies that trade small volumes of product can benefit from economies of scale.

Accepted Answer

A) True 
 B)False

Question 14

Simple model of free trade assumed away transportation costs between countries.

Accepted Answer

A) True 
 B)False

Question 15

Variety of goods that a country can produce is limited by the size of the market in industries where economies of scale are important.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is an example of a basic factor that a nation will possess as proposed by Porter?

Accepted Answer

A)  Communication infrastructure 
B)  Skilled labor 
C)  Natural resources 
D)  Technological knowledge 
A)  Communication infrastructure 
B)  Skilled labor 
C)  Natural resources 
D)  Technological knowledge

Question 17

A country has an absolute advantage in the production of a product when it is more efficient than any other country in producing it.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is one of the four attributes present in Porter's diamond?

Accepted Answer

A)  Economies of scale 
B)  Factor endowments 
C)  Structural innovation 
D)  Procedural innovation 
A)  Economies of scale 
B)  Factor endowments 
C)  Structural innovation 
D)  Procedural innovation

Question 19

Which of the following is a major disadvantage of the product life-cycle theory introduced by Vernon?

Accepted Answer

A)  The theory's arguments seem ethnocentric and increasingly dated. 
B)  The theory failed to explain the dominance of developed nations. 
C)  The theory applies only when a poor nation invents a new product. 
D)  The theory cannot be used to explain the production of luxury products. 
A)  The theory's arguments seem ethnocentric and increasingly dated. 
B)  The theory failed to explain the dominance of developed nations. 
C)  The theory applies only when a poor nation invents a new product. 
D)  The theory cannot be used to explain the production of luxury products.

Question 20

Which of the following is a major benefit of engaging in free trade?

Accepted Answer

A)  It helps to reduce the financial volatility in global markets. 
B)  It helps the countries protect the jobs that are available to their citizens. 
C)  It gives countries access to products that they cannot produce. 
D)  It allows the governments to exert more control on businesses. 
A)  It helps to reduce the financial volatility in global markets. 
B)  It helps the countries protect the jobs that are available to their citizens. 
C)  It gives countries access to products that they cannot produce. 
D)  It allows the governments to exert more control on businesses.

Some of the arguments made by the product life-cycle theory seem ethnocentric and increasingly dated when viewed from an Asian or European perspective.

Identify the theory that predicts that countries will export those goods that make intensive use of factors that are locally abundant.

What are the sources of economies of scale?

Diminishing returns to specialization occurs when ____.

Explain the Paul Samuelson's critique.

Which of the following terms refers to the unit cost reductions associated with large sized outputs?

According to Ricardo's theory of comparative advantage, countries shall not produce a good even if they have an absolute advantage in its production.

What is the main principle of mercantilism?

Identify the theory that supports the view that in some cases countries export for the reason that the world market can support only a limited number of firms.

Explain the concept of free trade.

A rich country improves its productivity by engaging in free trade with a poor country. This situation supports Paul Samuelson's critique.

The Heckscher-Ohlin theory predicts that countries will export those goods that make intensive use of factors that are locally scarce.

Companies that trade small volumes of product can benefit from economies of scale.

Simple model of free trade assumed away transportation costs between countries.

Variety of goods that a country can produce is limited by the size of the market in industries where economies of scale are important.

Which of the following is an example of a basic factor that a nation will possess as proposed by Porter?

A country has an absolute advantage in the production of a product when it is more efficient than any other country in producing it.

Which of the following is one of the four attributes present in Porter's diamond?

Which of the following is a major disadvantage of the product life-cycle theory introduced by Vernon?

Which of the following is a major benefit of engaging in free trade?

Globalization

National Differences in Political Economy

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 6: International Trade Theory

Some of the arguments made by the product life-cycle theory seem ethnocentric and increasingly dated when viewed from an Asian or European perspective.

Identify the theory that predicts that countries will export those goods that make intensive use of factors that are locally abundant.

What are the sources of economies of scale?

Diminishing returns to specialization occurs when ____.

Explain the Paul Samuelson's critique.

Which of the following terms refers to the unit cost reductions associated with large sized outputs?

According to Ricardo's theory of comparative advantage, countries shall not produce a good even if they have an absolute advantage in its production.

What is the main principle of mercantilism?

Identify the theory that supports the view that in some cases countries export for the reason that the world market can support only a limited number of firms.

Explain the concept of free trade.

A rich country improves its productivity by engaging in free trade with a poor country. This situation supports Paul Samuelson's critique.

The Heckscher-Ohlin theory predicts that countries will export those goods that make intensive use of factors that are locally scarce.

Companies that trade small volumes of product can benefit from economies of scale.

Simple model of free trade assumed away transportation costs between countries.

Variety of goods that a country can produce is limited by the size of the market in industries where economies of scale are important.

Which of the following is an example of a basic factor that a nation will possess as proposed by Porter?

A country has an absolute advantage in the production of a product when it is more efficient than any other country in producing it.

Which of the following is one of the four attributes present in Porter's diamond?

Which of the following is a major disadvantage of the product life-cycle theory introduced by Vernon?

Which of the following is a major benefit of engaging in free trade?

Globalization

National Differences in Political Economy

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters