Exam 5: Beyond Comparative Advantage

If trade in a particular good interindustry,the expansion of an industry in one country is likely to lead to the ________ of that industry in the other country.If trade in that good is intraindustry,expansion of the industry in one country is likely to lead to the ________ in the other country.

Most trade between Mexico and the United States is intrafirm.

Which of the following is FALSE?

Intraindustry trade tends to be more controversial than interindustry trade.

Interindustry trade refers to

Which of the following is NOT a true statement about industrial policies?

In an industry where transportation costs are high and there are limited scale economies,

Describe the two sources of economies of scale and how these economies of scale lead to intraindustry trade.

Which of the following is an example of intraindustry trade?

If countries have similar factor endowments and productivities,what type of trade are they most likely to have?

Interindustry trade is not based on comparative advantage since it consists of the export and import of similar goods.

Trade can stifle the development of industries than might be more efficient than existing ones.

Market failures are less likely to occur whenever

Carefully explain why there are gains from intraindustry trade.

Intraindustry trade refers to

If countries have similar factors of production and similar productivities,most of their trade is likely to be intraindustry.

Which of the following is NOT a problem in the implementation of industrial policies?

An internal economy means that ________,while an external economy means that ________.

Which of the following is true about monopolistic competition?

Which of the following is NOT a likely result of intraindustry trade based on internal economies of scale?