Identify the 5 Correct Statements

Essay

Identify the 5 correct statements
1. With "fragmentation" economists denote the uneven spread of economic activity over the globe
2. Because the "Smile Curve" is an empirical concept, not all curves do necessarily "smile".
3. The interaction of centrifugal and centripetal forces in global trade can help to explain "glocalization".
4. Trading cars for gasoline is denoted as "intra-industry trade"
5. According to the principle of comparative advantage, trade increases welfare on a global level because it allows to realise economies of scale.
6. According to the principle of comparative advantage trade increases welfare on a global level because of efficiency gains from specialisation.
7. According to the principle of comparative advantage, efficiency gains from specialisation are distributed amongst trading partners according to the terms-of trade.
8. According to the principle of comparative advantage, trade is a zero-sum game as the gains of one trading partner are compensated fully by losses of the other trading partner.
9. Wages and exchange rates turn (Ricardian) comparative advantages of nations into competitive advantages of industries.
10. The export performance of the German textile industry cannot be influenced by the performance of the German automobile industry.