BF150 Quiz 1 Review

This means that the price of a basket of goods should be the equivalent in each country.

Selling goods in a foreign market at below their costs of production or as selling goods in a foreign market at below their “fair” market value.

A policy that partially or entirely restricts the export of a good.

If the real interest rate is the same worldwide, any difference in interest rates between countries reflects differing expectations about inflation rates

The theory that the situation where a capital intensive country exports products that are capital intensive

• Adam Smith Theory

• Hecksher-Ohlin Theory

• Fisher Effect Theory

• Ricardo Theory

This theory highlights the first mover advantage and highlights economies of scale

• Hecksher-Ohlin Theory

• Adam Smith Theory

• Fisher Effect

• The New Trade Theory

Porter's Diamond Theory suggests that this attributes to promote or impede the creation of competitive advantage

• Firm Strategy, Structure, and Rivalry

• Current Forex Rates

• Big Mac Prices

• Climate Change

After the World Trade Organization; what was created to ensure friendly trade between neighboring countries?

• Chase Bank

• General Agreement on Tariffs and Trade (GATT)

• Bank of America

• International Monetary Fund (IMF)