According to Adam Smith, a country has absolute advantage in producing a product when it is more efficient than any other country in producing it. True or False?

Who proposed the theory of Comparative Advantage in 1817?

According to the Heckscher–Ohlin theory, what do countries export and import based on?

According to Raymond Vernon's Product Life-Cycle Theory, what happens as products mature?

What is a key criticism of the Product Life-Cycle Theory?

The New Trade Theory suggests that countries can benefit from trade even if they have similar levels of resources and technology. True or False?

What is a potential advantage of being the first mover in the electric vehicle industry according to the New Trade Theory?

Porter's Diamond attributes are crucial for understanding a country's competitive advantage. Which of the following is NOT one of these attributes?

Which factor is NOT considered as part of Factor Endowments in Porter's Diamond?

How does the presence of a strong local coffee industry and supporting businesses that are globally competitive impact a country's competitive advantage, according to Porter's Diamond?

Which theory suggests that a country should protect industries where being the first to enter the market and achieving economies of scale are crucial?

According to Porter, which attribute influences the ability of companies to build a competitive advantage in the market?

Which attribute identified by Porter can be influenced by chance and government?

Which of the following refers to the purchase, sale, or exchange of goods and services across national borders?

Most of the world merchandise trade is comprised of trade in ________.

Countries did all of the following to implement mercantilism EXCEPT ________.

Both absolute and comparative advantage theories assume that ________ is the only resource used in the production process.

When a country is not able to produce a good more efficiently than other nations, but produces the good more efficiently than it does any other good, it is said to have a(n)

The _______ theory states that countries produce and export goods that require resources that are abundant, and import goods that require resources in short supply.

During which stage of the product life cycle are companies looking for low-cost production bases in developing nations to supply a growing worldwide market?

Which of the following is NOT an argument offered by the new trade theory?

National competitive advantage theory states that a nation’s competitiveness in an industry depends on ________.

The theory of ________ maintains that a country's wealth is measured by its holdings of gold and silver.

According to mercantilism, what should a country's primary goal be?

Mercantilism ________.

Which theory suggests that a country should export those goods and services for which it is more productive than other countries and import those goods and services for which other countries are more productive?

The primary flaw in the theory of absolute advantage is that the theory ________.

Which theory suggests that a country should produce and export those goods and services for which it is relatively more productive than other countries and import those goods and services for which other countries are relatively more productive?

The ________ of a good is the value of what is given up to get the good.

Which theory listed below is also called the Heckscher-Ohlin theory?

Japan exports Toshiba Computers to the United States, and the United States exports Apple Computers to Japan. This is an example of ________.

Saudi Arabia has large crude oil reserves, and Bangladesh has a large pool of skilled workers. These are both examples of ________.

The country similarity theory suggests that most trade in manufactured goods should be between countries with similar ________.

In which stage of the international product life cycle does the innovating firm's country become a net importer of the product?

Which of the following is one of the four elements discussed in the theory of national competitive advantage?

________ suggest that FDI will be more likely to occur when transaction costs with a second firm are high.

Which of the following is one of the conditions specified in eclectic theory for the occurrence of foreign direct investment?

According to internalization theory, firms are more likely to license their brand names when transaction costs are high.

Dunning suggests that FDI will occur when there is an ownership advantage, a location advantage, and an internalization advantage.

Which of the following is a condition of Dunning's eclectic theory?

For the ________ advantage to accrue, undertaking the business activity must be more profitable overseas than undertaking it locally.

Examples of ownership advantage include which of the following?

Mercantilism is an economic philosophy advocating that countries should simultaneously encourage imports and discourage exports.

There is an absolute advantage when one country is more efficient than any other country in producing a particular product.

Positive-Sum Game is a situation in which a gain by one country results in a loss by another.

Economies of Scale are the unit cost reductions associated with a small scale of output.

Refers to the extent to which a country is endowed with such resources as land, labor, and capital.

According to comparative advantage theory, nations can still gain from trade even without an absolute advantage.

Rent seeking occurs when one group organizes and lobbies the government to protect its interests.

Factor endowments refer to a nation’s position in factors of production necessary to compete in a given industry.

Refer to the nature of home demand for the industry’s product or service.

Refer to the presence or absence of supplier industries and related industries that are intentionally competitive.

Government policy can influence rivalry through regulation and antitrust laws.

A situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country or what they can produce and sell to another country.

The following are International trade theories except:

The economic and strategic advantages that accrue to early entrants into an industry.

Cost advantages associated with large-scale production.

Heckscher-Ohlin Theory advocated government intervention by recommending policies to maximize exports and minimize imports.

Product life cycle theory focus on the product, not its factor proportions.

The following are implications for international business except:

Four attributes consisting Porter's Diamond, except:

This theory is also known as the Factor Endowment Theory

Which of the following is a major benefit of engaging in free trade?

Which of the following is a major flaw associated with mercantilism?

Free trade refers to a situation where a government does not try to influence what its citizens can buy from global markets.

According to Adam Smith, A country should specialize in the production of a good when it has the necessary raw materials for production.

Theory of comparative advantage was presented by:

Which of the following theories suggests that first mover advantage is significant in the export of a good?

The simple example of comparative advantage assumes:

Unrestricted free trade is beneficial, but because of diminishing returns, the gains may not be as great as the simple model would suggest.

___________ argues that dynamic gains from trade may not always be beneficial.

Identify the theory that predicts that countries will export those goods that make intensive use of factors that are locally abundant.

The product life-cycle theory, proposed by Bertil Ohlin, suggested that as products mature both the location of sales and the optimal production location will change affecting the flow and direction of trade.

This theory explains what has happened for products like photocopiers and a number of other high technology products developed in the US in the 1960s and 1970s.

Without trade, markets are large enough to support the production necessary to achieve economies of scale.

Which of the following is one of the four attributes present in Porter's diamond?

A nation's position in factors of production can lead to competitive advantage

Government policy can:

Conditions governing how companies are created, organized, and managed, and the nature of domestic rivalry.

Firms that establish a first-mover advantage may dominate global trade in that product.

What principle or theory argues that it is in a country's best interests to maintain a trade surplus?

The product life cycle theory suggests that over time, demand for the new product would grow in other advanced countries making it worthwhile for foreign producers to begin producing for their home markets.

Who is the proponent of the Principle of Absolute Advantage?

Who is the proponent of the Principle of Comparative Advantage?

It refers to the ability of a producer (or country) to produce a good or service in greater quantity for the same cost, or the same quantity at lower cost, than other producers.

It refers to an economy's ability to produce goods and services at a lower opportunity cost than its trade partners than other producers.

Given that:

In the production of 1 ton desiccated coconut, the Philippines uses 50 units of resources, and Sri Lanka uses 65 units of resources.

In the production of 1 ton of tea, the Philippines uses 75 units of resources, and Sri Lanka uses 40 units of resources.

In what products each country has absolute advantage on?

Given that:

In the production of 1 ton rice, the Philippines uses 40 units of resources, and Sri Lanka uses 65 units of resources.

In the production of 1 ton of corn, the Philippines uses 15 units of resources, and Sri Lanka uses 40 units of resources.

In what products each country has comparative advantage on?

True or False:

The Heckscher–Ohlin theory predicts that countries will export those goods that make intensive use of locally abundant factors while importing goods that make intensive use of locally scarce factors.

Represents a distinct advantage in skills, technology, and/or capital assets that yields differentiated product offerings and/or cost-competitive homogeneous products.

In the production of particular products because of given climatic conditions, accesstoparticular resources, the availability of labor, etc.

Explanation why it is beneficial for a country to engage in what

The pattern of what that observe in the world economy.

The idea that a country gets more power by having more exports than imports, and accumulating more gold and silver than other countries.

Which of the following statement is/are true?

I. Under this system, governments wanted to control and regulate trade in the new lands.

II. Their end goal was to have favorable balance of trade where they exported more than they imported.

A country imports goods and services that are not comparatively less efficient to produce abroad

A country imports goods and services that are comparatively more desired than abroad

Different countries produce various goods and services inefficiently than others when they have an absolute advantage.

A country wealth depends on the availability of goods and services to it's citizens.

Which of the following is a major benefit of engaging in free trade?

Which of the following is a major flaw associated with mercantilism?

Free trade refers to a situation where a government does not try to influence what its citizens can buy from global markets.

According to Adam Smith, A country should specialize in the production of a good when it has the necessary raw materials for production.

Theory of comparative advantage was presented by:

Which of the following theories suggests that first mover advantage is significant in the export of a good?

The simple example of comparative advantage assumes:

Unrestricted free trade is beneficial, but because of diminishing returns, the gains may not be as great as the simple model would suggest.

___________ argues that dynamic gains from trade may not always be beneficial.

Identify the theory that predicts that countries will export those goods that make intensive use of factors that are locally abundant.

The product life-cycle theory, proposed by Bertil Ohlin, suggested that as products mature both the location of sales and the optimal production location will change affecting the flow and direction of trade.

This theory explains what has happened for products like photocopiers and a number of other high technology products developed in the US in the 1960s and 1970s.

Without trade, markets are large enough to support the production necessary to achieve economies of scale.

Which of the following is one of the four attributes present in Porter's diamond?

A nation's position in factors of production can lead to competitive advantage

Government policy can:

Conditions governing how companies are created, organized, and managed, and the nature of domestic rivalry.

Firms that establish a first-mover advantage may dominate global trade in that product.

What principle or theory argues that it is in a country's best interests to maintain a trade surplus?

The product life cycle theory suggests that over time, demand for the new product would grow in other advanced countries making it worthwhile for foreign producers to begin producing for their home markets.

Who is the proponent of the Principle of Absolute Advantage?

Who is the proponent of the Principle of Comparative Advantage?

It refers to the ability of a producer (or country) to produce a good or service in greater quantity for the same cost, or the same quantity at lower cost, than other producers.

It refers to an economy's ability to produce goods and services at a lower opportunity cost than its trade partners than other producers.

Given that:

In the production of 1 ton desiccated coconut, the Philippines uses 50 units of resources, and Sri Lanka uses 65 units of resources.

In the production of 1 ton of tea, the Philippines uses 75 units of resources, and Sri Lanka uses 40 units of resources.

In what products each country has absolute advantage on?

Given that:

In the production of 1 ton rice, the Philippines uses 40 units of resources, and Sri Lanka uses 65 units of resources.

In the production of 1 ton of corn, the Philippines uses 15 units of resources, and Sri Lanka uses 40 units of resources.

In what products each country has comparative advantage on?

True or False:

The Heckscher–Ohlin theory predicts that countries will export those goods that make intensive use of locally abundant factors while importing goods that make intensive use of locally scarce factors.