QUIZ 2 ( Theories on INternational Trade)

When the value of export is greater than the value of import, it is called__________________________?

• Trade surplus

• Trade deficit

• Protectionism

Country's wealth was determined by the amount of its gold and silver holdings.

• trade surplus

• mercantilism

• absolute advantage

• competitive advantage

H e developed the product life cycle theory.

• Adam Smith

• Raymond Vernon

• Steffan Linder

• Paul Krugman

Heckscher-Ohlin Theory is also known as_______________________________?

*Note: Dont include any symbols/Unnecessary letters

Do NOT use caps lock

In mercantilism, The objective of each country is to have trade deficit and to avoid trade surplus.

• TRUE

• FALSE

The following are the determinants of Porter's National COmpetitive Advantage Theory EXCEPT:

• Local Firm Strategy and structure

• Local demand conditions

• Local industrial resources

• Local factor conditions

Comparative advantage focus on the relative productivity differences, absolute advanatage looks at the absolute productivity

• TRUE

• FALSE

When the value of import is greater than the value of export, it is called _____________________.

• Trade deficit

• Trade surplus

Who introduced the theory of absolute advantage?

• Adam Smith

• David Ricardo

• Bertil Ohlin

• Michael Porter

What theory did Steffan Linder develop?

• Product life cycle Theory

• Country Similarity Theory

• Gobal Strategic Rivalry Theory

• Porters National Competitive Theory