International Business

Which trade theory suggests that a country should specialize in producing and exporting goods that it can produce more efficiently and import goods that it cannot produce as efficiently?

• Opportunity Cost

• Comparative Advantage

• Absolute Advantage

• Balance of Trade

According to the absolute advantage theory, a country should specialize in producing goods that it can produce with

• equal resources or at an equal cost

• more resources or at a higher cost

• less resources or at a lower cost

• no resources or at no cost

Which trade theory suggests that a country should specialize in producing and exporting goods that intensively use factors of production that are abundant in that country?

• Heckscher-Ohlin theory

• Mercantilism theory

• Absolute advantage theory

• Comparative advantage theory

Which trade theory suggests that economies of scale and network effects can lead to trade even when countries do not differ in terms of resource endowments or technology?

• Comparative Advantage

• Absolute Advantage

• Heckscher-Ohlin Theory

• New Trade Theory

Which trade theory suggests that trade can be explained by differences in technology and resource endowments between countries?

• Comparative advantage theory

• Absolute advantage theory

• New trade theory

• Heckscher-Ohlin theory

Which trade theory suggests that a country should specialize in producing and exporting goods that it can produce more efficiently than other countries?

Evaluate responses using AI:

OFF

Which trade theory suggests that a country should specialize in producing and exporting goods that it can produce more efficiently and import goods that it cannot produce as efficiently?

• Comparative Advantage

• Balance of Trade

• Opportunity Cost

• Absolute Advantage

Which trade theory suggests that a country should specialize in producing and exporting goods that intensively use factors of production that are abundant in that country?

Evaluate responses using AI:

OFF

Which trade theory suggests that economies of scale and network effects can lead to trade even when countries do not differ in terms of resource endowments or technology?

• Absolute Advantage

• Comparative Advantage

• New Trade Theory

• Heckscher-Ohlin Theory

Which trade theory suggests that trade can be explained by differences in technology and resource endowments between countries?

• Comparative advantage theory

• Absolute advantage theory

• New trade theory

• Heckscher-Ohlin theory