QUESTION The new trade theory suggests that a country may predominate in the export of a good simply because it was lucky enough to have one or more pioneering firms to produce that good. Indicate whether the statement is true or false. ANSWER TRUE The new trade theory suggests that a country may predominate […]
Date: September 3rd, 2020
QUESTION Porter’s theory has been subjected to detailed empirical testing and it is proven that it accurately predicts international trade patterns. Indicate whether the statement is true or false. ANSWER FALSE Porter’s theory has not been subjected to detailed empirical testing. Much about the theory rings true, but the same can be said for […]
Date: September 3rd, 2020
QUESTION Individual firms should invest substantial financial resources in trying to build a first-mover advantage, even if that means several years of losses before a new venture becomes profitable. Indicate whether the statement is true or false. ANSWER TRUE Individual firms should realize that it pays to invest substantial financial resources in trying to […]
Date: September 3rd, 2020
QUESTION Porter’s theory suggests that it is in the best interest of business for a firm to invest in upgrading advanced factors of production. Indicate whether the statement is true or false. ANSWER TRUE Porter’s theory suggests that it is in the best interest of business for a firm to invest in upgrading advanced […]
Date: September 3rd, 2020
QUESTION Sentoria is an island nation in the Pacific Ocean. Its geographical location is advantageous since it has access to a variety of aquatic life forms and also a number of freshwater sources that provide for fisheries. The lack of arable land drives local demand for seafood. The competition in the domestic fishing industry is […]
Date: September 3rd, 2020
QUESTION Which of the following terms best represents a situation in which 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? A. Free trade B. Positive-sum game C. Socialism D. Absolute advantage E. Zero-sum game […]
Date: September 3rd, 2020
QUESTION Salcia is a country that depends heavily on domestic products. The Salcian government decides on the products that can be imported and ensures that any product that can be produced at home is not imported. A major part of Salcia’s trade is concentrated on exporting agricultural produce and textiles. Which of the following influences […]
Date: September 3rd, 2020
QUESTION Which of the following asserts that countries should simultaneously encourage exports and discourage imports? A. Ethnocentrism B. Capitalism C. Collectivism D. Mercantilism E. Socialism ANSWER D
Date: September 3rd, 2020
QUESTION Mercantilism, propagated in the sixteenth and seventeenth centuries, advocated that countries should simultaneously encourage both imports and exports. Indicate whether the statement is true or false. ANSWER FALSE Propagated in the sixteenth and seventeenth centuries, mercantilism advocated that countries should simultaneously encourage exports and discourage imports.
Date: September 3rd, 2020
QUESTION The Nobel Prize-winning economist Paul Samuelson argued that contrary to the standard interpretation, in certain circumstances the theory of comparative advantage predicts that a rich country might actually be worse off by switching to a free trade regime with a poor nation. Indicate whether the statement is true or false. ANSWER TRUE Nobel […]
Date: September 3rd, 2020
