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WorksheetsInternational trade Quiz 3
Total questions: 10
Worksheet time: 5mins
What does the Heckscher-Ohlin theory explain?
A. The impact of technological advancements on international trade.
B. The role of government subsidies in promoting exports.
C. The pattern of international trade based on differences in national factor endowments.
D. The importance of cultural factors in determining trade patterns.
According to the Heckscher-Ohlin theory, why do countries export certain goods?
A. Because those goods are produced using advanced technology.
B. Because they have a comparative advantage in those goods.
C. Because they receive government incentives for exporting.
D. Because those goods are in high demand globally.
What is the main difference between Ricardo’s theory and the Heckscher-Ohlin theory?
A. Ricardo’s theory focuses on differences in productivity, while the Heckscher-Ohlin theory emphasizes factor endowments.
B. Ricardo’s theory explains trade patterns based on cultural factors, while the Heckscher-Ohlin theory considers technological advancements.
C. Ricardo’s theory argues against free trade, while the Heckscher-Ohlin theory supports it.
D. Ricardo’s theory is outdated, while the Heckscher-Ohlin theory is more relevant today.
What does Porter’s diamond seek to explain?
A. Why some nations succeed in international competition.
B. The impact of exchange rates on trade balances.
C. The role of multinational corporations in global markets.
D. The effect of government regulations on exports.
Why did Michael Porter develop the concept of the diamond?
A. To challenge existing theories of international trade.
B. To promote protectionist policies.
C. To explain the impact of cultural factors on trade.
D. To analyze the role of labor unions in export industries.
What are the four broad attributes of a nation in Porter’s diamond theory?
A. Factor endowments, demand conditions, related industries, and firm strategy.
B. Infrastructure, skilled labor, rivalry, and government policies.
C. Factor endowments, demand conditions, supplier industries, and cultural factors.
D. Factor endowments, demand conditions, related industries, and chance events.
Which attribute refers to a nation’s position in factors of production, such as skilled labor or infrastructure?
A. Factor endowments
B. Demand conditions
C. Relating and supporting industries
D. Firm strategy
According to Porter, in which industries are firms most likely to succeed?
A. Industries with high government support
B. Industries with favorable demand conditions
C. Industries with low rivalry
D. Industries where the diamond is most favorable
What does Porter mean by the diamond being a mutually reinforcing system?
A. The effect of one attribute depends on the state of others.
B. The diamond shape represents cooperation among firms.
C. The diamond theory is universally applicable.
D. The diamond attributes reinforce each other through government policies.
Why does favorable demand conditions alone not result in competitive advantage, according to Porter?
A. Because demand conditions are influenced by chance events.
B. Because rivalry is necessary for firms to respond to demand.
C. Because supplier industries are more critical for success.
D. Because government policies override demand conditions.
