Question 1

What are factor endowments?

Accepted Answer

Factor endowments refer to the extent to

Question 2

Country X,a poor country,invents a revolutionary electronic product.The country markets this new product in other poor countries to garner large profits.This occurrence is against the idea of _____.

Accepted Answer

A)  product life-cycle theory 
B)  Ricardo's theory 
C)  theory of absolute advantage 
D)  theory of comparative advantage 
A)  product life-cycle theory 
B)  Ricardo's theory 
C)  theory of absolute advantage 
D)  theory of comparative advantage

Question 3

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 4

A country's balance-of-payments accounts keep track of the _____.

Accepted Answer

A)  basic factor endowments and advanced factor endowments that the nation possesses 
B)  payments to and receipts from other countries for a particular time period 
C)  income taxes paid by domestic firms and the spending on the firms 
D)  total value of taxes paid by domestic firms and the spending on the firms 
A)  basic factor endowments and advanced factor endowments that the nation possesses 
B)  payments to and receipts from other countries for a particular time period 
C)  income taxes paid by domestic firms and the spending on the firms 
D)  total value of taxes paid by domestic firms and the spending on the firms

Question 5

Which of the following is the main principle of mercantilism?

Accepted Answer

A)  Protection of domestic industries is not essential for a nation's welfare. 
B)  Government intervention is not required in global trade. 
C)  Countries should encourage absolute free trade. 
D)  It is in a country's best interests to maintain a trade surplus. 
A)  Protection of domestic industries is not essential for a nation's welfare. 
B)  Government intervention is not required in global trade. 
C)  Countries should encourage absolute free trade. 
D)  It is in a country's best interests to maintain a trade surplus.

Question 6

First-mover advantages are the economic and strategic advantages that accrue to early entrants into an industry.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a theory that can be used to justify limited government intervention to support the development of certain export-oriented industries?

Accepted Answer

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

Question 8

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 9

The theories of international trade claim that promoting free trade is generally in the best interests of an individual firm,although it may not always be in the best interest of a country.

Accepted Answer

A) True 
 B)False

Question 10

Adam smith argued that countries should specialize in the production of goods for which they have an absolute advantage.

Accepted Answer

A) True 
 B)False

Question 11

Explain the Paul Samuelson's critique.

Accepted Answer

Paul Samuelson's critique looks at what

Question 12

According to Ricardo's theory of comparative advantage,a country should produce goods _____.

Accepted Answer

A)  for which it has access to raw materials 
B)  that it produces most efficiently 
C)  that have the highest domestic demand 
D)  for which it has an absolute advantage 
A)  for which it has access to raw materials 
B)  that it produces most efficiently 
C)  that have the highest domestic demand 
D)  for which it has an absolute advantage

Question 13

Explain how the rivalry within an industry affects international competence.

Accepted Answer

Porter's second point is that there is a

Question 14

According to Paul Samuelson's critique,a poor country will rapidly improve its productivity if a rich country enters into a free trade agreement with it.

Accepted Answer

A) True 
 B)False

Question 15

The theories of Smith and Ricardo show that countries should not engage in international trade for products that it is able to produce for itself.

Accepted Answer

A) True 
 B)False

Question 16

A country has an absolute advantage in the production of a product when it _____.

Accepted Answer

A)  has the capability to produce the product within its boundaries 
B)  is more efficient than any other country in producing it 
C)  has the largest domestic demand for the product 
D)  has access to the raw materials needed to produce the product 
A)  has the capability to produce the product within its boundaries 
B)  is more efficient than any other country in producing it 
C)  has the largest domestic demand for the product 
D)  has access to the raw materials needed to produce the product

Question 17

Resources always move easily from one economic activity to another.

Accepted Answer

A) True 
 B)False

Question 18

The product life-cycle theory argues that the developing nations will not produce a product if the product is highly standardized.

Accepted Answer

A) True 
 B)False

Question 19

Do you think a new trade theorist would stress the role of luck and entrepreneurship? Explain.

Accepted Answer

Perhaps the most contentious implication

Question 20

David Ricardo's theory of comparative advantage explains global trade in terms of the _____.

Accepted Answer

A)  first mover advantage that certain countries and firms enjoy 
B)  geographical differences between various countries 
C)  international differences in labor productivity 
D)  late mover advantage that certain countries and firms possess 
A)  first mover advantage that certain countries and firms enjoy 
B)  geographical differences between various countries 
C)  international differences in labor productivity 
D)  late mover advantage that certain countries and firms possess

What are factor endowments?

Country X,a poor country,invents a revolutionary electronic product.The country markets this new product in other poor countries to garner large profits.This occurrence is against the idea of _____.

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

A country's balance-of-payments accounts keep track of the _____.

Which of the following is the main principle of mercantilism?

First-mover advantages are the economic and strategic advantages that accrue to early entrants into an industry.

Which of the following is a theory that can be used to justify limited government intervention to support the development of certain export-oriented industries?

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

The theories of international trade claim that promoting free trade is generally in the best interests of an individual firm,although it may not always be in the best interest of a country.

Adam smith argued that countries should specialize in the production of goods for which they have an absolute advantage.

Explain the Paul Samuelson's critique.

According to Ricardo's theory of comparative advantage,a country should produce goods _____.

Explain how the rivalry within an industry affects international competence.

According to Paul Samuelson's critique,a poor country will rapidly improve its productivity if a rich country enters into a free trade agreement with it.

The theories of Smith and Ricardo show that countries should not engage in international trade for products that it is able to produce for itself.

A country has an absolute advantage in the production of a product when it _____.

Resources always move easily from one economic activity to another.

The product life-cycle theory argues that the developing nations will not produce a product if the product is highly standardized.

Do you think a new trade theorist would stress the role of luck and entrepreneurship? Explain.

David Ricardo's theory of comparative advantage explains global trade in terms of the _____.

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, corporate Social Responsibility, and Sustainability

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

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 and Supply Chain Management

Global Marketing and Rd

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 6: International Trade Theory

What are factor endowments?

Country X,a poor country,invents a revolutionary electronic product.The country markets this new product in other poor countries to garner large profits.This occurrence is against the idea of _____.

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

A country's balance-of-payments accounts keep track of the _____.

Which of the following is the main principle of mercantilism?

First-mover advantages are the economic and strategic advantages that accrue to early entrants into an industry.

Which of the following is a theory that can be used to justify limited government intervention to support the development of certain export-oriented industries?

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

The theories of international trade claim that promoting free trade is generally in the best interests of an individual firm,although it may not always be in the best interest of a country.

Adam smith argued that countries should specialize in the production of goods for which they have an absolute advantage.

Explain the Paul Samuelson's critique.

According to Ricardo's theory of comparative advantage,a country should produce goods _____.

Explain how the rivalry within an industry affects international competence.

According to Paul Samuelson's critique,a poor country will rapidly improve its productivity if a rich country enters into a free trade agreement with it.

The theories of Smith and Ricardo show that countries should not engage in international trade for products that it is able to produce for itself.

A country has an absolute advantage in the production of a product when it _____.

Resources always move easily from one economic activity to another.

The product life-cycle theory argues that the developing nations will not produce a product if the product is highly standardized.

Do you think a new trade theorist would stress the role of luck and entrepreneurship? Explain.

David Ricardo's theory of comparative advantage explains global trade in terms of the _____.

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, corporate Social Responsibility, and Sustainability

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

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 and Supply Chain Management

Global Marketing and Rd

Global Human Resource Management

Accounting and Finance in the International Business

Filters