Exam 6: International Trade Theories and Concepts

If Commodity Y requres 2 units of capital and 2 units of labor and commodity X requires 1 unit of capital and 4 units of labor then Y is

According to Classical economists, -------is the reason for a country to specialie in the production of a commodity

H-o Theory s based on value theory.

Comparative Advantage theory is based on -------value

According to H-O theory, International trade is, but a pecial case of -------trade.

Total amount of labor in Nation 1 is greater than labor in nation 2 if

Ricardian theory has -------countries and           commodities

According to Adam Smith, international trade is advantageous for all participating countries only if they enjoy -------difference in cost of production

Comparative Advantage is expressed in -------     

Factor abundance can be explained using

Factor intensity is measured in -------terms

If,England 1 wine = 1/2 cloth and if Portugal 1 wine = 1 cloth, this I an example of

England 1 unit wine =1/2unit cloth, Portugal 1 unit wine = 1 unit cloth. This is an example of

A nation is capital abundant if

No change in technology, no transport cost, constant returns to scale - these assumptions make the Comparative Cost advantage theory     -------

Who aid the following, " The esence of international trade is not the absolute difference in cost but a comparative difference in cost."

The rate at which goods are exchangeed between two countries is called

Commodity Y is Capital intensive if -------

International trade is the result of an advantage country possesses in producing a particular commodity at a -------         

H-O Theory is a -------model