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WorksheetsInternational trade
Total questions: 15
Worksheet time: 8mins
The theory of ________ maintains that a country's wealth is measured by its holdings of gold and silver.
mercantilism
neomercantilism
competitive advantage
comparative advantage
The ________ of a good is the value of what is given up to get the good.
relative cost
opportunity cost
absolute cost
discount cost
Saudi Arabia has large crude oil reserves, and Bangladesh has a large pool of skilled workers. These are both examples of ________.
factor endowments
economies of scope
production factors
opportunity costs
________ suggest that FDI will be more likely to occur when transaction costs with a second firm are high.
Eclectic theory
Internalization theory
Ownership advantage theory
National competitive advantage
Which of the following is one of the conditions specified in eclectic theory for the occurrence of foreign direct investment?
non-ownership advantage
location advantage
home country advantage
externalization advantage
Examples of ownership advantage include which of the following?
prestige
liability
intellectual property
benefits of outsourcing
Which factor of production plays a role in the Comparative Advantage model?
Capital
Labour
Land
Goods
A country will become an exporter of a good if
there are enough producers of that good
the world market price is above the domestic price
the government imposes export quotas
the world market price is below the domestic price
Four main stages in product life cycle theory:
Introduction - Maturity - Decline - Growth
Introduction - Growth - Decline - Maturity
Introduction - Growth - Maturity - Decline
Introduction - Maturity - Growth - Decline
Which is NOT part of Porter's diamond of competitive advantage theory?
Supply Conditions
Strategy, Structure and Rivalry
Supporting Industries
Factor Endowments
Which term refer to the exchange of goods and services between different countries?
Good And service trade
International trade
domestic trade
All the answers above
Which factor of production refers to natural resources and raw materials used in production?
Labor
Capital
Entrepreneurship
Land
What type of international investment can describe as a "financial investment"?
Foreign direct investment (FDI)
Foreign portfolio investment (FPI)
Real estate investment
Goods investment
Comparative advantage explains why a nation will benefit from trade when:
it exports more than it imports.
its trading partners are experiencing offsetting losses.
it exports goods for which it is a high-opportunity cost producer, while importing those for which it is a low-opportunity cost producer.
it exports goods for which it is a low-opportunity cost producer, while importing those for which it is a high-opportunity cost producer.
Which of the following is a form of foreign direct investment?
foreign stock ownership
bitcoin ownership
participation in a joint venture
mutual fund ownership
