Question 1

Classical theories assume no foreign exchange complications.

Accepted Answer

A) True 
 B)False  True

Question 2

Antidumping duties are levied on a country's exports.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following describes resource mobility as assumed by the classical theories of international trade?

Accepted Answer

A)  It is the assumption that a resource used in producing a product for one industry can be shifted and put to use in another industry. 
B)  It is the notion that countries should share their resources freely with other countries. 
C)  It is the expectation that all resource-based transactions will have no foreign exchange complications. 
D)  It is the assertion that all resources of a nation should be directly controlled by the government. 
A)  It is the assumption that a resource used in producing a product for one industry can be shifted and put to use in another industry. 
B)  It is the notion that countries should share their resources freely with other countries. 
C)  It is the expectation that all resource-based transactions will have no foreign exchange complications. 
D)  It is the assertion that all resources of a nation should be directly controlled by the government. A

Question 4

Briefly elaborate on any three nontariff barriers (NTBs).

Accepted Answer

Non-tariff barriers include subsidies,im

Question 5

Subsidies are nontariff barriers.

Accepted Answer

A) True 
 B)False

Question 6

Discuss the characteristics of the modern trade theories.

Accepted Answer

The product life cycle theory accounts f

Question 7

Factor endowments is one of the four interacting aspects of the theory of national competitive
advantage of industries.

Accepted Answer

A) True 
 B)False

Question 8

In the context of tariff barriers,deadweight = total inefficiency - net gain.

Accepted Answer

A) True 
 B)False

Question 9

In which of the following ways is the theory of comparative advantage linked to the Heckscher-Ohlin theory?

Accepted Answer

A)  Sustainability of wealth in the short run 
B)  Dynamic changes in the patterns of trade over time 
C)  Dependency on a nation's locally available abundant factors 
D)  Extent to which government influences international trade 
A)  Sustainability of wealth in the short run 
B)  Dynamic changes in the patterns of trade over time 
C)  Dependency on a nation's locally available abundant factors 
D)  Extent to which government influences international trade

Question 10

The strategic trade theory was mainly proposed for low capital-investment industries.

Accepted Answer

A) True 
 B)False

Question 11

Deadweight costs are net losses that occur when _____ are imposed.

Accepted Answer

A)  import tariffs 
B)  import quotas 
C)  voluntary export restraints 
D)  local content requirements 
A)  import tariffs 
B)  import quotas 
C)  voluntary export restraints 
D)  local content requirements

Question 12

Which of the following assumptions are present in the classical theories of international trade?

Accepted Answer

A)  Different produces have different product life cycles 
B)  Transportation costs should underpin foreign trade 
C)  Resource mobility is not easy to achieve 
D)  No complications in foreign exchange transactions 
A)  Different produces have different product life cycles 
B)  Transportation costs should underpin foreign trade 
C)  Resource mobility is not easy to achieve 
D)  No complications in foreign exchange transactions

Question 13

A trade _____ is an economic condition in which a nation imports more than it exports.

Accepted Answer

A)  deficit 
B)  surplus 
C)  embargo 
D)  VER 
A)  deficit 
B)  surplus 
C)  embargo 
D)  VER

Question 14

Deadweight costs occur in an economy as a result of VER.

Accepted Answer

A) True 
 B)False

Question 15

Elaborate on Michael Porter's "diamond" theory.

Accepted Answer

The "diamond" theory focuses on why cert

Question 16

Both exporting and importing are taken into account when calculating balance of trade.

Accepted Answer

A) True 
 B)False

Question 17

The _____ theory advocates government intervention in highly capital-intensive,high entry-barrier industries in which domestic firms may have little chance without government assistance.

Accepted Answer

A)  product life cycle 
B)  laissez faire 
C)  strategic trade 
D)  absolute advantage 
A)  product life cycle 
B)  laissez faire 
C)  strategic trade 
D)  absolute advantage

Question 18

_____ are restrictions on the quantity of imports.

Accepted Answer

A)  VERs 
B)  Import quotas 
C)  Subsidies 
D)  Antidumping duties 
A)  VERs 
B)  Import quotas 
C)  Subsidies 
D)  Antidumping duties

Question 19

Which of the following is true of the absolute advantage theory of international trade?

Accepted Answer

A)  It emphasizes relative advantage in one economic activity that one nation enjoys in comparison with other nations. 
B)  It divides the countries of the world into three categories based on innovation. 
C)  It advocates extensive government intervention in international trade. 
D)  It was the first theory that advocated free trade. 
A)  It emphasizes relative advantage in one economic activity that one nation enjoys in comparison with other nations. 
B)  It divides the countries of the world into three categories based on innovation. 
C)  It advocates extensive government intervention in international trade. 
D)  It was the first theory that advocated free trade.

Question 20

The concept of opportunity cost is crucial to the theory of comparative advantage.

Accepted Answer

A) True 
 B)False

Classical theories assume no foreign exchange complications.

Antidumping duties are levied on a country's exports.

Which of the following describes resource mobility as assumed by the classical theories of international trade?

Briefly elaborate on any three nontariff barriers (NTBs).

Subsidies are nontariff barriers.

Discuss the characteristics of the modern trade theories.

Factor endowments is one of the four interacting aspects of the theory of national competitive advantage of industries.

In the context of tariff barriers,deadweight = total inefficiency - net gain.

In which of the following ways is the theory of comparative advantage linked to the Heckscher-Ohlin theory?

The strategic trade theory was mainly proposed for low capital-investment industries.

Deadweight costs are net losses that occur when _____ are imposed.

Which of the following assumptions are present in the classical theories of international trade?

A trade _____ is an economic condition in which a nation imports more than it exports.

Deadweight costs occur in an economy as a result of VER.

Elaborate on Michael Porter's "diamond" theory.

Both exporting and importing are taken into account when calculating balance of trade.

The _____ theory advocates government intervention in highly capital-intensive,high entry-barrier industries in which domestic firms may have little chance without government assistance.

_____ are restrictions on the quantity of imports.

Which of the following is true of the absolute advantage theory of international trade?

The concept of opportunity cost is crucial to the theory of comparative advantage.

Globalizing Business

Understanding Formal Institutions: Politics, Laws, and Economics

Emphasizing Informal Institutions: Cultures, Ethics, and Norms

Leveraging Resources and Capabilities

Investing Abroad Directly

Dealing with Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,Structuring,and Learning around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Financing and Governing the Corporation Globally

Managing Corporate Social Responsibility Globally

Filters

Exam 5: Trading Internationally

Classical theories assume no foreign exchange complications.

Antidumping duties are levied on a country's exports.

Which of the following describes resource mobility as assumed by the classical theories of international trade?

Briefly elaborate on any three nontariff barriers (NTBs).

Subsidies are nontariff barriers.

Discuss the characteristics of the modern trade theories.

Factor endowments is one of the four interacting aspects of the theory of national competitive advantage of industries.

In the context of tariff barriers,deadweight = total inefficiency - net gain.

In which of the following ways is the theory of comparative advantage linked to the Heckscher-Ohlin theory?

The strategic trade theory was mainly proposed for low capital-investment industries.

Deadweight costs are net losses that occur when _____ are imposed.

Which of the following assumptions are present in the classical theories of international trade?

A trade _____ is an economic condition in which a nation imports more than it exports.

Deadweight costs occur in an economy as a result of VER.

Elaborate on Michael Porter's "diamond" theory.

Both exporting and importing are taken into account when calculating balance of trade.

The _____ theory advocates government intervention in highly capital-intensive,high entry-barrier industries in which domestic firms may have little chance without government assistance.

_____ are restrictions on the quantity of imports.

Which of the following is true of the absolute advantage theory of international trade?

The concept of opportunity cost is crucial to the theory of comparative advantage.

Globalizing Business

Understanding Formal Institutions: Politics, Laws, and Economics

Emphasizing Informal Institutions: Cultures, Ethics, and Norms

Leveraging Resources and Capabilities

Investing Abroad Directly

Dealing with Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,Structuring,and Learning around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Financing and Governing the Corporation Globally

Managing Corporate Social Responsibility Globally

Filters