Identify the 5 Correct Statements

Essay

Identify the 5 correct statements
1. Countries with a large absolute number of workers have always a comparative advantage in producing labour-intensive goods.
2. The factor price equalisation theorem predicts absolute global wage equalisation.
3. For full factor price equalisation full price equalisation is required.
4. The "Leontief paradox" has shown that the US was a net exporter of labour-intensive goods.
5. According to the "product cycle theory of trade and investment", labour-rich countries have a comparative advantage in the "maturing phase" of a good's product cycle.
6. With respect to changes in comparative advantages, "trade in tasks" is much less predictable than trade in goods.
7. The "learning curve" can serve as an argument to use industrial policies in a latecomer country to create a comparative advantage.
8. Latecomer countries should always use infant-industry-protection policies to catch-up by learning.
9. Integrating two markets where economies of scale and product differentiation are present can help to become more competitive in relation to third countries.
10. Integrating two markets where economies of scale and product differentiation are present leads to less competition, higher prices and, thus, higher profits.