The Heckscher-Ohl in model rules out the classical model’s basis for trade by assuming that _________ is (are) identical between countries? A. factor endowments B. factor intensitiesC. technology D. opportunity costs
Declining costs per unit of output results from international trade especially if ? A. International trade affords producers monopoly power B. National governments levy imports tariffs and quotas C. Producing goods entails increasing costsD. Economies of scale exist for producers
Dynamic comparative advantage theory ? A. helps explain why some nations use industrial policy to support potentially competitive new firms B. cannot explain strategic competition between firms such as Boeing and Airbus C. Is another name for Ricardo’s comparative advantage…
That the division of labor is limited by the size of the market best applies to which explanation of trade ? A. Factor endowment theory B. Product life cycle theoryC. Economies of scale theory D. Overlapg demand theory
_____ 1954 study of U.S trade patterns showed that U.S exports were labor-intensive compared with U.S imports, even though the United States was widely regarded as a relatively capital-abundant nation ? A. Paul Samuelson’s B. Wolfgang Stolpher’s C. Staffan Linder’sD.…
For the United States empirical studies indicate that over the past two hundred years the cost of international transportation relative to the value of U.S imports has ? A. increasedB. Decreased C. Not changed D. Any of the above
The trade model of the Swedish economies Heckscher and Ohlin maintains that ? A. Absolute advantage determines the distribution of the gains from trade B. Comparative advantage determines the distribution of the gains from trade C. The division of labor…
Which trade theory contends that a country that initially develops and exports a new product may eventually become an importer of it and may no longer manufacture the product ? A. Theory of factor endowments B. Theory of overlapg demands…
The factor endowment model of international trade was developed by ? A. Adam Smith B. David Ricardo C. John Stuart MillD. Eli Heckscher and Bertil Ohlin
Interindustry trade can be explained by all of the following except ? A. high transportation costs as a proportion of product value B. different growing seasons of the year for agricultural products C. product differentiation for good such as automobilesD.…