Question 1

How does the theory of comparative advantage differ from the factor proportions theory? Include a description of the factor proportions theory in your answer.

Accepted Answer

An English economist named David Ricardo...

Question 2

The international product life cycle theory was put forth for ________.

Accepted Answer

A)  service goods
B)  abundant resources
C)  manufactured goods
D)  natural resourcesE) A) and D)
F) None of the above

Question 3

________ refers to the purchase,sale,or exchange of goods and services across national borders.

Accepted Answer

A)  Domestic trade
B)  Foreign direct investment
C)  International trade
D)  MercantilismE) None of the above
F) B) and D)

Question 4

Which element of national competitive advantage theory divides resources into two groups: basic and advanced?

Accepted Answer

A)  demand conditions
B)  factor conditions
C)  related and supporting industries
D)  firm,strategy,structure,and rivalryE) A) and C)
F) A) and D)

Question 5

Describe the potential benefits of international trade.Why would a nation trading with a neomercantilist country be at a disadvantage?

Accepted Answer

The purchase,sale,or exchange of goods a...

Question 6

A product's components are manufactured in a country that can produce them at a very low cost while maintaining its quality.These components are then assembled in another country where productivity in assembly is high.This process resembles the theory of ________.

Accepted Answer

A)  comparative advantage
B)  mercantilism
C)  the international product life cycle
D)  factor proportionsE) A) and C)
F) B) and D)

Question 7

Scenario: Conquering International Fulfillment
Jack Damon,a Boston-based entrepreneur,is determined not to make the same mistakes that hindered his former employer's business expansions.Jack knows that to increase his international sales,he must make some changes in how his orders are filled.
-In reviewing his fulfillment process,Jack realizes that different customers opt for different types of shipping based on their preferences.Which of the following would most likely help Jack provide better shipping service to his customers?

Accepted Answer

A)  introduce overnight delivery but at a very high cost
B)  reduce costs by implementing a cheaper but slower delivery method
C)  implement a universal delivery method to capitalize on efficiency gains
D)  offer customers a choice of delivery methods with different speeds and costsE) A) and B)
F) A) and C)

Question 8

Companies that belong to a nation's internationally competitive industries exist in isolation from supporting industries.

Accepted Answer

A) True 
 B)False

Question 9

The importance of trade for a nation can be measured by ________.

Accepted Answer

A)  examining the amount of wealth acquired by the national government through restrictive trade policies
B)  the living standards of people involved in only trade activities
C)  the number of acquired territories the nation has that serves as sources of inexpensive raw materials
D)  examining the volume of its trade relative to its total outputE) A) and D)
F) All of the above

Question 10

The ________ theory states that countries produce and export goods that require resources available in abundance and import goods that require resources in short supply.

Accepted Answer

A)  new trade
B)  absolute advantage
C)  international product life cycle
D)  factor proportionsE) A) and B)
F) A) and C)

Question 11

Trade in services tends to be relatively more important for the world's richest countries.

Accepted Answer

A) True 
 B)False

Question 12

Nations following the theory of ________ believed that the world's wealth was limited and that a nation could increase its share of the pie only at the expense of its neighbors.

Accepted Answer

A)  absolute advantage
B)  comparative advantage
C)  mercantilism
D)  factor proportionsE) A) and B)
F) A) and C)

Question 13

Explain how both the international product life cycle theory and the new trade theory ultimately result in lower priced goods.Include a definition of "first mover advantage" in your answer.

Accepted Answer

The international product life cycle the...

Question 14

Another term for neomercantilism is ________.

Accepted Answer

A)  new trade
B)  free trade
C)  economic nationalism
D)  political nationalismE) A) and B)
F) A) and C)

Question 15

International trade is the purchase,sale,or exchange of goods and services across national borders.

Accepted Answer

A) True 
 B)False

Question 16

Factor proportions theory was developed by ________.

Accepted Answer

A)  Smith and Ricardo
B)  Ricardo and Ohlin
C)  Heckscher and Ohlin
D)  Heckscher and SmithE) A) and B)
F) None of the above

Question 17

Scenario: Better Mousetrap Inc.
Better Mousetrap Inc.is a manufacturing company that sells pest control products.Recently the company launched an innovative mousetrap with a unique design that has been selling well in the U.S.market.Senior Vice President Marc Wallace,even recommended expanding sales overseas in order to increase company revenues.
-Wallace expects that markets abroad will soon become fully aware of the existence of the product and its benefits.Which of the following life cycle stages will the product be a part of during that period?

Accepted Answer

A)  maturing product stage
B)  product decline stage
C)  standardized product stage
D)  new product stageE) A) and D)
F) A) and B)

Question 18

The ________ theory states that a country's export eventually becomes its import.

Accepted Answer

A)  competitive advantage
B)  factor proportions
C)  international product life cycle
D)  new tradeE) A) and B)
F) B) and C)

Question 19

The international product life cycle theory was developed by ________.

Accepted Answer

A)  Milton Friedman
B)  Karl Marx
C)  Michael Porter
D)  Raymond VernonE) B) and C)
F) B) and D)

Question 20

Which of the following statements is true regarding the assumptions of the absolute and comparative advantage theories?

Accepted Answer

A)  The theories assume that there are many number of countries engaged in the production and consumption of just two goods.
B)  The theories assume that there are additional costs for transporting traded goods from one country to another.
C)  The theories assume labor to be the only resource used in the production process.
D)  The theories assume that specialization in the production of one particular good results in gains in efficiency.E) A) and D)
F) A) and C)

Exam 5: International Trade

Correct Answer
verified

________ refers to the purchase,sale,or exchange of goods and services across national borders.

Correct Answer
verified

The ________ theory states that a country's export eventually becomes its import.

Correct Answer
verified

A product's components are manufactured in a country that can produce them at a very low cost while maintaining its quality.These components are then assembled in another country where productivity in assembly is high.This process resembles the theory of ________.

Correct Answer
verified

Another term for neomercantilism is ________.

Correct Answer
verified

The ________ theory states that countries produce and export goods that require resources available in abundance and import goods that require resources in short supply.

Correct Answer
verified

International trade is the purchase,sale,or exchange of goods and services across national borders.

Correct Answer
verified

Describe the potential benefits of international trade.Why would a nation trading with a neomercantilist country be at a disadvantage?

Correct Answer
verified
The purchase,sale,or exchange of goods a...
View Answer

The international product life cycle theory was developed by ________.

Correct Answer
verified

Explain how both the international product life cycle theory and the new trade theory ultimately result in lower priced goods.Include a definition of "first mover advantage" in your answer.

Correct Answer
verified
The international product life cycle the...
View Answer

Factor proportions theory was developed by ________.

Correct Answer
verified

Trade in services tends to be relatively more important for the world's richest countries.

Correct Answer
verified

How does the theory of comparative advantage differ from the factor proportions theory? Include a description of the factor proportions theory in your answer.

Correct Answer
verified
An English economist named David Ricardo...
View Answer

Companies that belong to a nation's internationally competitive industries exist in isolation from supporting industries.

Correct Answer
verified

Nations following the theory of ________ believed that the world's wealth was limited and that a nation could increase its share of the pie only at the expense of its neighbors.

Correct Answer
verified

Which of the following statements is true regarding the assumptions of the absolute and comparative advantage theories?

Correct Answer
verified

The importance of trade for a nation can be measured by ________.

Correct Answer
verified

The international product life cycle theory was put forth for ________.

Correct Answer
verified

Correct Answer
verified

Which element of national competitive advantage theory divides resources into two groups: basic and advanced?

Correct Answer
verified

Exam 5: International Trade

Correct AnswerverifiedShow Answer

________ refers to the purchase,sale,or exchange of goods and services across national borders.

Correct AnswerverifiedShow Answer

The ________ theory states that a country's export eventually becomes its import.

Correct AnswerverifiedShow Answer

A product's components are manufactured in a country that can produce them at a very low cost while maintaining its quality.These components are then assembled in another country where productivity in assembly is high.This process resembles the theory of ________.

Correct AnswerverifiedShow Answer

Another term for neomercantilism is ________.

Correct AnswerverifiedShow Answer

The ________ theory states that countries produce and export goods that require resources available in abundance and import goods that require resources in short supply.

Correct AnswerverifiedShow Answer

International trade is the purchase,sale,or exchange of goods and services across national borders.

Correct AnswerverifiedShow Answer

Describe the potential benefits of international trade.Why would a nation trading with a neomercantilist country be at a disadvantage?

Correct AnswerverifiedThe purchase,sale,or exchange of goods a...View AnswerShow Answer

The international product life cycle theory was developed by ________.

Correct AnswerverifiedShow Answer

Explain how both the international product life cycle theory and the new trade theory ultimately result in lower priced goods.Include a definition of "first mover advantage" in your answer.

Correct AnswerverifiedThe international product life cycle the...View AnswerShow Answer

Factor proportions theory was developed by ________.

Correct AnswerverifiedShow Answer

Trade in services tends to be relatively more important for the world's richest countries.

Correct AnswerverifiedShow Answer

How does the theory of comparative advantage differ from the factor proportions theory? Include a description of the factor proportions theory in your answer.

Correct AnswerverifiedAn English economist named David Ricardo...View AnswerShow Answer

Companies that belong to a nation's internationally competitive industries exist in isolation from supporting industries.

Correct AnswerverifiedShow Answer

Nations following the theory of ________ believed that the world's wealth was limited and that a nation could increase its share of the pie only at the expense of its neighbors.

Correct AnswerverifiedShow Answer

Which of the following statements is true regarding the assumptions of the absolute and comparative advantage theories?

Correct AnswerverifiedShow Answer

The importance of trade for a nation can be measured by ________.

Correct AnswerverifiedShow Answer

The international product life cycle theory was put forth for ________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which element of national competitive advantage theory divides resources into two groups: basic and advanced?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The purchase,sale,or exchange of goods a...
View Answer

Correct Answer
verified

Correct Answer
verified
The international product life cycle the...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
An English economist named David Ricardo...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified