Exam 2: International Trade Theory and Application

The US exports a great many technology products. This is an example of

High income countries will tend to produce product innovations before lower income countries, according to Vernon.

Mercantilists identified national wealth with the size of a nation's reserves of precious metals.

What is the first international trade theory?

______________ is the exchange of goods and services across borders.

The concept of mercantilism indicates that maximizing national wealth as expressed by a trade surplus is a desirable thing.

In terms of overall trade patterns, the fastest growing segment listed i

The __________ is associated with the first production of the product in the innovating country (0-A) and the early portion of the export monopoly stage.

In the Heckscher-Ohlin Theorem, _________ function shows the amount of output that can be produced by using a given quantity of capital and labor.

Nations will tend to import goods where there are human and/or technology gaps in the national infrastructure.

In the search for explanations of the Leontief Paradoxes, economists explored all of these except

David Ricardo wrote on ____________ Advantage Theory

The US is one of the biggest exporters of chopsticks. This is because the US has great resources in terms of forest products. This is an example of:

What were the primary goals of Mercantilism Theory?

The biggest importer of automotive products is

Nations should produce goods and services where they possess a comparative production cost advantage and favorable production factors.

A technology gap

According to Leontief, government agendas and industrial biases will vary production based upon factor endowments.

Adam Smith wrote primarily about comparative advantage.

A _______________ occurs when the relative prices of labor and capital change over time, which changes the relative mix of capital and labor in the production process of a commodity from being capital intensive to labor intensive (or vice versa)