Exam 3: Sources of Comparative Advantage

According to the specific factors trade theory:

When considering the effects of transportation costs,the conclusions of our trade model must be modified.This is because transportation costs result in:

According to Staffan Linder,trade between two countries tends to be most pronounced when the countries:

According to the product-life-cycle theory,the first stage of a product's trade cycle is when it is introduced to the home market.

Owners of resources specific to export industries tend to lose from international trade,while owners of factors specific to import-competing industries tend to gain.

With economies of scale and decreasing unit costs,a country has the incentive to:

The theory of overlapping demands predicts that trade in manufactured goods is unimportant for countries with very different:

The Heckscher-Ohlin theory asserts that relative differences in labor productivity underlie comparative advantage.

Decreasing cost conditions lead to complete specialization in the production of the commodity of comparative advantage.

The imposition of pollution-control regulations on domestic steel manufacturers leads to decreases in production costs and an improvement in the steel manufacturers' competitiveness.

From 2000-2010,which nation lost thousands of jobs to China,whose average wages were half of those of this country?

According to Ricardian theory,comparative advantage depends on relative differences in labor productivity.

Chinese manufacturers face rising wages because of:

According to the theory of intra-industry trade,many manufactured goods undergo a trade cycle in which the home country initially is an exporter and eventually becomes an importer of a product.

Eli Heckscher and Bertil Ohlin are associated with the theory of comparative advantage that stresses differences in:

Explain how immigration and trade may worsen wage inequality,and how college education may mitigate against that.

Classical trade theory emphasized which of the following as an underlying explanation of the basis for trade?

Dynamic comparative advantage refers to the creation of comparative advantage through the mobilization of skilled labor,technology,and capital.

Legislation requiring domestic manufacturers to install pollution abatement equipment tends to promote:

According to the factor-endowment theory,international specialization and trade cause a nation's cheap resource to become cheaper and a nation's expensive resource to become more expensive.