Exam 5: International Trade

National competitive advantage theory states that a nation's competitiveness in an industry depends on ________.

Under factor proportions theory, a nation's resources include all of the following EXCEPT ________.

The level of world output in any given year influences the level of trade in that year.

________ theory states that the country that will produce a good is determined by the product's stage in its life cycle.

In the ________ stage of the international product life cycle, the domestic market and markets abroad become fully aware of the existence of a new product and its benefits.

When a country's currency is weak relative to other nations, imports are more expensive relative to domestic products.

In the ________ of the international product life cycle, competition from other companies selling similar products pressures companies to lower prices in order to maintain sales levels.

Exploring the volume of international trade and world output provides useful insights into who trades with whom.

Factor proportions theory states that factors in great supply relative to demand will be more costly than factors in short supply relative to demand.

The majority of total world merchandise trade occurs among ________.

Explain the effect of trade on developing and transition nations.

Intra-regional exports in Europe are ________ they are in Asia.

Germany is central Europe's largest trading partner.

The theory of absolute advantage destroys the mercantilist idea that international trade is a ________.

________ occurs between different states, regions, or cities within a country.

According to new trade theory, as a company increases the extent to which it specializes in the production of a particular good, output rises because of gains in efficiency.

The value of trade passing through some nations' borders actually exceeds the amount of goods and services that they produce.

World merchandise exports are worth around ________.

The theory of absolute advantage measures a nation's wealth by determining the ________.

The condition that results when the value of a country's imports is greater than the value of its exports is called ________.