Question 1

The context for explaining trade on the basis of human skills was the lack of the following types of human skills

Accepted Answer

A)  scientist, managerial, technical and skilled labor skills 
B)  light assembly skills. 
C)  manual dexterity and uniform skills. 
D)  clerical and stenographical skills. 
A)  scientist, managerial, technical and skilled labor skills 
B)  light assembly skills. 
C)  manual dexterity and uniform skills. 
D)  clerical and stenographical skills. A

Question 2

Heckscher-Ohlin advocates that nations should produce goods where there are favorable factor endowments.

Accepted Answer

A) True 
 B)False  True

Question 3

International (or foreign) trade is the exchange of goods and services across borders

Accepted Answer

A) True 
 B)False  True

Question 4

Mercantilism places great faith in government to improve the well-being of people, using economic controls.

Accepted Answer

A) True 
 B)False

Question 5

According to Ricardo, if England has a higher opportunity cost of producing wine over textiles, it should produce wine.

Accepted Answer

A) True 
 B)False

Question 6

H-O explains the link between

Accepted Answer

A)  factor endowments and life cycles. 
B)  factor endowments and comparative advantage. 
C)  comparative advantage and competitive advantage. 
D)  life cycles and natural resources. 
A)  factor endowments and life cycles. 
B)  factor endowments and comparative advantage. 
C)  comparative advantage and competitive advantage. 
D)  life cycles and natural resources.

Question 7

When the WTO ruled that the EU violated international law by establishing tariffs and quotas on Latin American bananas, the outcome was

Accepted Answer

A)  that the EU was obligated to change its policies. 
B)  the EU could no longer import bananas for a specified time 
C)  the EU was in danger of going to war with Costa Rica. 
D)  there needed to be extended negotiations to overcome the trade impasse. 
A)  that the EU was obligated to change its policies. 
B)  the EU could no longer import bananas for a specified time 
C)  the EU was in danger of going to war with Costa Rica. 
D)  there needed to be extended negotiations to overcome the trade impasse.

Question 8

Gold reserves represent a minor portion of national foreign exchange reserves.

Accepted Answer

A) True 
 B)False

Question 9

The concept of Absolute Advantage indicates that nations should encourage production in goods and services where those nations possess absolute production advantages over other nations.

Accepted Answer

A) True 
 B)False

Question 10

Laissez-faire means literally "make freely" or, more generally, "freedom of enterprise and freedom of commerce."

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is an example of absolute advantage?

Accepted Answer

A)  A forest where rare species of flower grows. 
B)  A country where it is cheaper to produce coffee. 
C)  A country where products have been produced for a great many years. 
D)  All of the above are examples. 
A)  A forest where rare species of flower grows. 
B)  A country where it is cheaper to produce coffee. 
C)  A country where products have been produced for a great many years. 
D)  All of the above are examples.

Question 12

The biggest exporting region for automotive products is

Accepted Answer

A)  Asia. 
B)  North America. 
C)  Europe. 
D)  Africa. 
A)  Asia. 
B)  North America. 
C)  Europe. 
D)  Africa.

Question 13

Production can be predicted by human skills and technology gaps existing in an economy.

Accepted Answer

A) True 
 B)False

Question 14

Which stage of Product Life Cycle is characterized by production of standardized products with stable techniques and intense price competition?

Accepted Answer

A)  new-product stage 
B)  growth stage 
C)  maturity stage 
D)  decline stage 
A)  new-product stage 
B)  growth stage 
C)  maturity stage 
D)  decline stage

Question 15

Lower comparative production costs, in comparison with other nations, would indicate the need to produce at home.

Accepted Answer

A) True 
 B)False

Question 16

An example of a country with increased probability for producing technology innovations would be

Accepted Answer

A)  the USA. 
B)  United Kingdom. 
C)  Japan. 
D)  all of the above. 
A)  the USA. 
B)  United Kingdom. 
C)  Japan. 
D)  all of the above.

Question 17

Developed countries trade more than lesser developed ones.

Accepted Answer

A) True 
 B)False

Question 18

The concept of comparative advantage advocates the analysis of opportunity costs in choosing those goods and services to produce at home.

Accepted Answer

A) True 
 B)False

Question 19

According to Adam Smith, if Morocco produces oil related products better than any other country, it should concentrate on that type of production while importing other necessities.

Accepted Answer

A) True 
 B)False

Question 20

Based on Leontief Theory, which of the following paradoxes is correct?

Accepted Answer

A)  demand bias for capital-intensive goods and existence of trade barriers 
B)  importance of natural resources 
C)  prevalence of factor-intensity reversals 
D)  all of the above 
A)  demand bias for capital-intensive goods and existence of trade barriers 
B)  importance of natural resources 
C)  prevalence of factor-intensity reversals 
D)  all of the above

The context for explaining trade on the basis of human skills was the lack of the following types of human skills

Heckscher-Ohlin advocates that nations should produce goods where there are favorable factor endowments.

International (or foreign) trade is the exchange of goods and services across borders

Mercantilism places great faith in government to improve the well-being of people, using economic controls.

According to Ricardo, if England has a higher opportunity cost of producing wine over textiles, it should produce wine.

H-O explains the link between

When the WTO ruled that the EU violated international law by establishing tariffs and quotas on Latin American bananas, the outcome was

Gold reserves represent a minor portion of national foreign exchange reserves.

The concept of Absolute Advantage indicates that nations should encourage production in goods and services where those nations possess absolute production advantages over other nations.

Laissez-faire means literally "make freely" or, more generally, "freedom of enterprise and freedom of commerce."

Which of the following is an example of absolute advantage?

The biggest exporting region for automotive products is

Production can be predicted by human skills and technology gaps existing in an economy.

Which stage of Product Life Cycle is characterized by production of standardized products with stable techniques and intense price competition?

Lower comparative production costs, in comparison with other nations, would indicate the need to produce at home.

An example of a country with increased probability for producing technology innovations would be

Developed countries trade more than lesser developed ones.

The concept of comparative advantage advocates the analysis of opportunity costs in choosing those goods and services to produce at home.

According to Adam Smith, if Morocco produces oil related products better than any other country, it should concentrate on that type of production while importing other necessities.

Based on Leontief Theory, which of the following paradoxes is correct?

International Business in an Age of Globalization

Foreign Direct Investment Theory and Application

The Multinational Enterprise

Country Competitiveness

The Cultural Environment

The Political and Legal Environment

International Economic Integration and Institutions

The International Monetary System and Financial Markets

International Entry Strategies

Mne Organization Structure and Design

Building and Managing Global Strategic Alliances Gsas

Managing Global Research and Development Rd

Financial Management for Global Operations

International Accounting for Global Operations

Global Marketing and Supply Chain

Global Human Resource Management

Internet and Global E-Commerce

Social Responsibility and Corruption in the Global Marketplace

International Entrepreneurship

Filters

Exam 2: International Trade Theory and Application

The context for explaining trade on the basis of human skills was the lack of the following types of human skills

Heckscher-Ohlin advocates that nations should produce goods where there are favorable factor endowments.

International (or foreign) trade is the exchange of goods and services across borders

Mercantilism places great faith in government to improve the well-being of people, using economic controls.

According to Ricardo, if England has a higher opportunity cost of producing wine over textiles, it should produce wine.

H-O explains the link between

When the WTO ruled that the EU violated international law by establishing tariffs and quotas on Latin American bananas, the outcome was

Gold reserves represent a minor portion of national foreign exchange reserves.

The concept of Absolute Advantage indicates that nations should encourage production in goods and services where those nations possess absolute production advantages over other nations.

Laissez-faire means literally "make freely" or, more generally, "freedom of enterprise and freedom of commerce."

Which of the following is an example of absolute advantage?

The biggest exporting region for automotive products is

Production can be predicted by human skills and technology gaps existing in an economy.

Which stage of Product Life Cycle is characterized by production of standardized products with stable techniques and intense price competition?

Lower comparative production costs, in comparison with other nations, would indicate the need to produce at home.

An example of a country with increased probability for producing technology innovations would be

Developed countries trade more than lesser developed ones.

The concept of comparative advantage advocates the analysis of opportunity costs in choosing those goods and services to produce at home.

According to Adam Smith, if Morocco produces oil related products better than any other country, it should concentrate on that type of production while importing other necessities.

Based on Leontief Theory, which of the following paradoxes is correct?

International Business in an Age of Globalization

Foreign Direct Investment Theory and Application

The Multinational Enterprise

Country Competitiveness

The Cultural Environment

The Political and Legal Environment

International Economic Integration and Institutions

The International Monetary System and Financial Markets

International Entry Strategies

Mne Organization Structure and Design

Building and Managing Global Strategic Alliances Gsas

Managing Global Research and Development Rd

Financial Management for Global Operations

International Accounting for Global Operations

Global Marketing and Supply Chain

Global Human Resource Management

Internet and Global E-Commerce

Social Responsibility and Corruption in the Global Marketplace

International Entrepreneurship

Filters