The comparative advantage model of Ricardo was based on ? A. intraindustry specialization and tradeB. interindustry specialization and trade C. demand conditions underlying specialization and trade D. income conditions underlying specialization and trade
According to the Heckscher-Ohlin model the source of comparative advantage is a country’s ? A. technology B. advertisingC. factor endowments D. both (a) and (c)
Difference in environmental standards or other government regulations among nations ? A. have no impact on patterns of international trade B. have tended to make U.S steel companies more competitive internationallyC. can affect production costs and thus alter comparative advantages…
Intra-industry trade theory ? A. Explains why the United States might export autos and import clothingB. Explains why the United States might export and import differentiated versions of the same product such as different types of autos C. Assumes that…
Should international transportation costs decrease the effect on international trade would include a (an) ? A. increase in the volume of trade B. Smaller gain from trade C. Decline in the income of home producers D. Decrease in the level…
According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ? A. similar endowments of natural resources B. similar levels of technologyC. similar per-capita incomes D. similar wage levels
According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will ? A. Devote excessive amounts of resources to agricultural production B. Devote insufficient amounts of resources to agricultural productionC. Export products that are land-intensive…
The theory of overlapg demand predicts that trade in manufactured goods is unimportant for countries with very different ? A. Tastes and preferences B. Expectations of future interest rate levelsC. Per-capita income levels D. Labor productivities
Boeing aircraft company was able to over its production costs of the first – jumbo jetll in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates ? A. How economies of…
The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries ? A. Economies of large-scale productionB. Relative abundance of various resources C. Relative costs of labor D. Research and development expenditures