Question 1

The theory of overlapping demands contends that international trade in manufactured products is strongest among nations with similar income levels.

Accepted Answer

A) True 
 B)False

Question 2

The theory of overlapping demands applies best to trade in manufactured goods.

Accepted Answer

A) True 
 B)False

Question 3

Should international transportation costs decrease,the effect on international trade would include:

Accepted Answer

A)  An increase in the volume of trade 
B)  A smaller gain from trade 
C)  A decline in the income of home producers 
D)  A decrease in the level of specialization in production. 
A)  An increase in the volume of trade 
B)  A smaller gain from trade 
C)  A decline in the income of home producers 
D)  A decrease in the level of specialization in production.

Question 4

Ricardo's theory of comparative advantage is a static theory that does not consider changes in international competitiveness over the long run.

Accepted Answer

A) True 
 B)False

Question 5

Empirical studies conclude that U.S.environmental policies are a more important determinant of trade performance than capital,raw materials,labor skills,and wages.

Accepted Answer

A) True 
 B)False

Question 6

According to the factor endowment model,countries heavily endowed with land will:

Accepted Answer

A)  Devote excessive amounts of resources to agricultural production 
B)  Devote insufficient amounts of resources to agricultural production 
C)  Export products that are land-intensive 
D)  Import products that are land-intensive 
A)  Devote excessive amounts of resources to agricultural production 
B)  Devote insufficient amounts of resources to agricultural production 
C)  Export products that are land-intensive 
D)  Import products that are land-intensive

The theory of overlapping demands contends that international trade in manufactured products is strongest among nations with similar income levels.

The theory of overlapping demands applies best to trade in manufactured goods.

Should international transportation costs decrease,the effect on international trade would include:

Ricardo's theory of comparative advantage is a static theory that does not consider changes in international competitiveness over the long run.

Empirical studies conclude that U.S.environmental policies are a more important determinant of trade performance than capital,raw materials,labor skills,and wages.

According to the factor endowment model,countries heavily endowed with land will:

the International Economy and Globalization

Foundations of Modern Trade Theory: Comparative Advantage

Tariffs

Nontariff Trade Barriers

Trade Regulations and Industrial Policies

Trade Policies for the Developing Nations

Regional Trading Arrangements

International Factor Movements and Multinational Enterprises

the Balance of Payments

Foreign Exchange

Exchange-rate Determination

Balance-of-payments Adjustments

Exchange-rate Adjustments and the Balance of Payments

Exchange-rate Systems and Currency Crises

Macroeconomic Policy in an Open Economy

International Banking: Reserves, debt, and Risk

Filters

Exam 3: Sources of Comparative Advantage

The theory of overlapping demands contends that international trade in manufactured products is strongest among nations with similar income levels.

The theory of overlapping demands applies best to trade in manufactured goods.

Should international transportation costs decrease,the effect on international trade would include:

Ricardo's theory of comparative advantage is a static theory that does not consider changes in international competitiveness over the long run.

Empirical studies conclude that U.S.environmental policies are a more important determinant of trade performance than capital,raw materials,labor skills,and wages.

According to the factor endowment model,countries heavily endowed with land will:

the International Economy and Globalization

Foundations of Modern Trade Theory: Comparative Advantage

Tariffs

Nontariff Trade Barriers

Trade Regulations and Industrial Policies

Trade Policies for the Developing Nations

Regional Trading Arrangements

International Factor Movements and Multinational Enterprises

the Balance of Payments

Foreign Exchange

Exchange-rate Determination

Balance-of-payments Adjustments

Exchange-rate Adjustments and the Balance of Payments

Exchange-rate Systems and Currency Crises

Macroeconomic Policy in an Open Economy

International Banking: Reserves, debt, and Risk

Filters