Question 1

Subsidies are nontariff barriers.

Accepted Answer

A) True 
 B)False

Question 2

A trade _____ is an economic condition in which a nation imports more than it exports.

Accepted Answer

A)   deficit 
B)   surplus 
C)   embargo 
D)   VER

Question 3

Discuss the political arguments against free trade.

Accepted Answer

Political arguments against free trade i...

Question 4

Political arguments against free trade focus on protectionism and infant industries.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following trade theories divides the nations of the world into three categories?

Accepted Answer

A)   National competitive advantage of industries 
B)   Strategic trade 
C)   Factor endowment 
D)   Product life cycle

Question 6

Classical theories are based on the assumption of perfect resource mobility.

Accepted Answer

A) True 
 B)False

Question 7

The concept of opportunity cost is crucial to the theory of comparative advantage.

Accepted Answer

A) True 
 B)False

Question 8

The theory of absolute advantage is categorized as a classical theory of international trade.

Accepted Answer

A) True 
 B)False

Question 9

The basic concept of protectionism and mercantilism is the same.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a modern trade theory?

Accepted Answer

A)   Comparative advantage 
B)   National competitive advantage 
C)   Mercantilism 
D)   Absolute advantage

Question 11

One of the arguments against free trade is the necessity to safeguard domestic industries.

Accepted Answer

A) True 
 B)False

Question 12

In the third stage of the product life cycle theory,the _____.

Accepted Answer

A)   demand and ability to produce the product grow in developed nations 
B)   product is standardized 
C)   lead innovation nation starts exporting more and importing less 
D)   production of a product commanding a price premium will be concentrated in the lead innovation nation

Question 13

_____ are restrictions on the quantity of imports.

Accepted Answer

A)   VERs 
B)   Import quotas 
C)   Subsidies 
D)   Antidumping duties

Question 14

Briefly elaborate on any three nontariff barriers (NTBs).

Accepted Answer

Non-tariff barriers include subsidies,im...

Question 15

Which of the following was the first international trade theory to account for changes in the patterns of trade over time?

Accepted Answer

A)   Comparative advantage theory 
B)   Absolute advantage theory 
C)   Product life cycle theory 
D)   Factor endowment theory

Question 16

Classical theories assume no foreign exchange complications.

Accepted Answer

A) True 
 B)False

Question 17

The product life cycle theory explains patterns of trade based on factor endowments.

Accepted Answer

A) True 
 B)False

Question 18

Both exporting and importing are taken into account when calculating balance of trade.

Accepted Answer

A) True 
 B)False

Exam 5: Trading Internationally

Which of the following was the first international trade theory to account for changes in the patterns of trade over time?

Correct Answer
verified

Both exporting and importing are taken into account when calculating balance of trade.

Correct Answer
verified

One of the arguments against free trade is the necessity to safeguard domestic industries.

Correct Answer
verified

The concept of opportunity cost is crucial to the theory of comparative advantage.

Correct Answer
verified

Political arguments against free trade focus on protectionism and infant industries.

Correct Answer
verified

A trade _____ is an economic condition in which a nation imports more than it exports.

Correct Answer
verified

Briefly elaborate on any three nontariff barriers (NTBs).

Correct Answer
verified
Non-tariff barriers include subsidies,im...
View Answer

Classical theories assume no foreign exchange complications.

Correct Answer
verified

Classical theories are based on the assumption of perfect resource mobility.

Correct Answer
verified

Discuss the political arguments against free trade.

Correct Answer
verified
Political arguments against free trade i...
View Answer

Which of the following trade theories divides the nations of the world into three categories?

Correct Answer
verified

_____ are restrictions on the quantity of imports.

Correct Answer
verified

The product life cycle theory explains patterns of trade based on factor endowments.

Correct Answer
verified

The theory of absolute advantage is categorized as a classical theory of international trade.

Correct Answer
verified

In the third stage of the product life cycle theory,the _____.

Correct Answer
verified

Subsidies are nontariff barriers.

Correct Answer
verified

Which of the following is a modern trade theory?

Correct Answer
verified

The basic concept of protectionism and mercantilism is the same.

Correct Answer
verified

Exam 5: Trading Internationally

Which of the following was the first international trade theory to account for changes in the patterns of trade over time?

Correct AnswerverifiedShow Answer

Both exporting and importing are taken into account when calculating balance of trade.

Correct AnswerverifiedShow Answer

One of the arguments against free trade is the necessity to safeguard domestic industries.

Correct AnswerverifiedShow Answer

The concept of opportunity cost is crucial to the theory of comparative advantage.

Correct AnswerverifiedShow Answer

Political arguments against free trade focus on protectionism and infant industries.

Correct AnswerverifiedShow Answer

A trade _____ is an economic condition in which a nation imports more than it exports.

Correct AnswerverifiedShow Answer

Briefly elaborate on any three nontariff barriers (NTBs).

Correct AnswerverifiedNon-tariff barriers include subsidies,im...View AnswerShow Answer

Classical theories assume no foreign exchange complications.

Correct AnswerverifiedShow Answer

Classical theories are based on the assumption of perfect resource mobility.

Correct AnswerverifiedShow Answer

Discuss the political arguments against free trade.

Correct AnswerverifiedPolitical arguments against free trade i...View AnswerShow Answer

Which of the following trade theories divides the nations of the world into three categories?

Correct AnswerverifiedShow Answer

_____ are restrictions on the quantity of imports.

Correct AnswerverifiedShow Answer

The product life cycle theory explains patterns of trade based on factor endowments.

Correct AnswerverifiedShow Answer

The theory of absolute advantage is categorized as a classical theory of international trade.

Correct AnswerverifiedShow Answer

In the third stage of the product life cycle theory,the _____.

Correct AnswerverifiedShow Answer

Subsidies are nontariff barriers.

Correct AnswerverifiedShow Answer

Which of the following is a modern trade theory?

Correct AnswerverifiedShow Answer

The basic concept of protectionism and mercantilism is the same.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Non-tariff barriers include subsidies,im...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Political arguments against free trade i...
View 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