WorksheetsBAIB3004 Week 2 Seminar 24/25
Total questions: 10
Worksheet time: 5mins
Which of the following best exemplifies the application of the theory of comparative advantage in the real world?
The United States exporting aircraft while importing electronics from China
Both countries producing and exporting the same products
Countries only engaging in barter trade
Countries refusing to engage in international trade
According to Porter's Diamond Model, which factor is NOT considered when analysing a country's competitive advantage in an industry?
Factor conditions
Demand conditions
Currency exchange rates
Related and supporting industries
Which of the following is a real-world application of the Heckscher-Ohlin model?
A labour-abundant country exporting labour-intensive goods
A capital-abundant country exporting labour-intensive goods
Countries only trading in finished goods
Countries refusing to trade based on factor endowments
How has the Heckscher-Ohlin model been applied to understand trade patterns between developed and developing countries?
It explains why developed countries export capital-intensive goods
It justifies protectionist policies
It suggests that all countries should specialise in the same industries
It proves that international trade is always detrimental
How might a company like McDonald's use Porter's Diamond Model in practice?
To analyse potential markets for expansion
To understand its competitive advantages in different countries
To identify synergies in domestic markets
All of the above
Which of the following represents a practical application of Samuelson's factor price equalisation theorem?
The gradual rise in labour costs in China as it engaged in international trade
Countries maintaining constant wage levels regardless of trade
The complete elimination of all international trade
Factors of production becoming more scarce in all countries
Which theory suggests that countries should specialise in producing goods they can make most efficiently?
Comparative advantage theory
Absolute advantage theory
Heckscher-Ohlin theory
New trade theory
Which of the following scenarios best illustrates the concept of "first-mover advantage" as explained in the New Trade Theory?
A country with abundant natural resources dominating the global market for those resources
A developing country attracting foreign investment by offering tax incentives
A company establishing a global brand and network effects before competitors enter the market
A country implementing protectionist policies to support its infant industries
How does the concept of "national diamond" in Porter's theory relate to the phenomenon of industrial clusters?
It suggests that industrial clusters are detrimental to national competitiveness
It explains why industrial clusters tend to form and contribute to national competitive advantage
It argues that industrial clusters are irrelevant in the global economy
It proposes that industrial clusters only benefit multinational corporations
According to the Heckscher-Ohlin model, a country will export goods that:
Use its abundant factors intensively
Use its scarce factors intensively
Have the highest absolute advantage
Have the lowest opportunity cost
