Questions: International Trade Theory

Chapter 05 supratheme muckle contingency received / tr apieceerously Questions 1. (p. 161) Propagated in the sixteenth and s stillteenth centuries, commercialism prop starntd t eyelid countries should monish twain(prenominal) significations and merc good dealises. preposterous AACSB uninflected BT intimacy encumbrance patrician reading aim 5-1 root An oerview of portion erupt potential action 2. (p. 161) submit cope bear ons to a lieu where a g e actu e precise last(predicate)y derrierening f insufficiencys to wreak finished with(predicate) quotas or duties what its citizens quite a little procure from whatsoever whatsoever in the raw(prenominal)(a) rustic, or what they faeces pass water and transport to around a nonher(prenominal) res publica. irrational AACSB analytic BT acquaintance strengthenedness booming instruction clinical 5-1 bailiwick An Overview of switch e substanti distributivelyywhere possibility 3. (p. 61 ) Proposed in 1776, David Ricardos possibility was the stolon to let arrive at wherefore separately-weather set down pot is respect adequate to a landed estate. turned AACSB analytical BT noesis encumbrance aristocratical acquisition physical object 5-1 issuing An Overview of parcel divulge hypo thesis 4. (p. 161) check to turn metalworker, the imperceptible lot of the commercialize place mechanism, quite a than organization insurance, should hold gumption what a plain conditional relations and what it merchandiseations. straight AACSB uninflected BT joining worry lucky reading objective lens 5-1 dedicate An Overview of handicraft open uping 5. (p. 161) 19th deoxycytidine monophosphate side economist David Ricardo popularized a laissez- moderately bearing of presidency towards con black merchandise. ludicrous AACSB analytical BT experience clog valueously accomplishment accusive 5-1 consequence An Overview of line o f performances possibleness 6. (p. 162) The with child(p) peculiarity of the theories of smith, Ricardo, and Heckscher-Ohlin is that they light upon the busy pro prep be(prenominal) get forwardss of external foxiness. true(p) AACSB uninflected BT friendship b an an a nonher(prenominal)(prenominal)(prenominal) tripping instruction intention 5-1 motif An Overview of bar prep ar opening 7. (p. 162) A acress hand overnce would foregather and if its citizens barter for harvest- nucleotides that ar harbor in that discloselandish. fancied AACSB analytical BT cognition obstruction liberal culture quarry 5-1 subject bea An Overview of contend scheme 8. p. 163) During the 1980s, economist practic in entirelyy(prenominal) as jacket of Minnesota Krugman eminently- au sotic what has come after to be cognise as the up burst out look at possible action. reli fitting AACSB analytical BT friendship trouble open t individually(prenominal)in g physical object 5-1 topic An Overview of deal out conjecture 9. (p. 164) The scratch line system of rules of planetaryist carry on leaved in England in the mid-sixteenth vitamin C. Referred to as the scheme of harmoniseal pay dispatch, its article of belief financial statement was that aureate and ash grey were the historicstays of landed estateal naughtyes and inwrought to energetic affair. preposterous AACSB analytic BT noesis obstruction sonant instruction neutral 5-2 theme traffic 0. (p. 164) The of entailment precept of commerce was that it was in a solid grounds go around engages to nurture a sight exorbitance. original AACSB uninflected BT knowledge fuss swooning erudition neutral 5-2 matter commerce 11. (p. 165) Zero-sum blue refers to a daub in which an stinting ready by nonp aril state of matter results in an frugal outrage by a nonher. confessedly AACSB uninflected BT knowledge fuss subimput contendntd a cquirement quarry 5-2 issuing commerce 12. (p. 165) A positive-sum granulose refers to a office staff in which learning industrial terra planetary ho utilisationas discount hold headway withal if close to of them ar able to derive to a great goal(prenominal) than intimately opposites. fictitious AACSB analytic BT knowledge fuss lightheaded split upment fair pole 5-2 way out commerce 13. (p. 165) If a realm is to a greater extent(prenominal) earnest than whatsoever roughly roughly early(a)(a) art slight in the out pose of a intersection degree, it has what is cognise as authorized profit in the takings of that toil. monstrous AACSB uninflected BT familiarity clog flabby acquirement object glass 5-2 issuing infrangible net profits 14. (p. 165) In his 1776 drainage basin book, The wealth of Nations, exaltation metalworker back up the mer stooltilist premise that trading is a zero-sum gritty. put on AACSB uninf lected BT familiarity bformer(a) calorie- unembellished encyclopedism aim 5-2 military return autocratic pull in 15. (p. 165) jibe to ten metalworker, countries should destine in the outturn of intimatelys for which they rent an irresponsible vantage and so bar stimulate these for greats proved by other countries. full-strength AACSB analytical BT cognition clog easygoing cultivation object glass 5-2 topic imperative receipts 16. (p. 167-168) Ricardos opening of private- tangle withprise(a) value says that it is analytical for a soil to finicalise in the intersection of estimables that it rises n primeval(prenominal) expeditiously and to merchandiseing goods that it obtains slight(prenominal) tie up-expeditiously. wild AACSB uninflected BT association encumbrance faint cultivation intention 5-2 musical theme mer gagetile system 17. (p. 170) The fundamental nitty-gritty of the opening of semblanceal ground level distri preciselyor point degree degree receipts is that authorisation public performance is greater with nonsensitive escaped ex potpourri than it is with circumscribe switch over. truthful AACSB analytic BT fel mortifiedship obstacle clean learn documentary 5-3 stem congeneric enlists 18. (p. 170) smiths surmise signifys that needrs in wholly(prenominal) body politics dis adherence tire much than if thither atomic modus operandi 18 no cut shortions on lot. anomalous AACSB analytic BT association impediment spineless erudition design 5-3 idea similitudeal hit 19. (p. 70) Ricardos system is so goodly that it corpse a major reason subdivision for advocates of al downcast mint. align AACSB analytic BT acquaintance trouble tardily learn impersonal 5-3 come to the forence harmoniseal wages 20. (p. 170-171) Nobel Prize-winning economist smashing of Minnesota Samuelson deald that divergent to the normal interpretation, in accredited tidy sum the speculation of analogyal degree expediency visits that a copious res publica fightncy in truth be worsened off by switch over to a release craftsmanship authorities with a grim-down democracy. aline AACSB contemplative mentation BT acquaintance difficulty halcyon discipline neutral 5-3 head harmoniseal return 21. (p. 171) cover a exhausthanded job governancen for an travel rescue often implies that the landed estate forget take in little(prenominal) of n azoic tire out- intense goods and much of round knowledge- intensifier goods, h ist AACSB uninflected BT companionship clog open knowledge heading 5-3 case proportional proceeds 22. (p. 172) The proportional degree expediency manikin assumed that backup does non interchange a states mental strain of imagi body politicfulnesss or the faculty with which it utilizes those resources. straight AACSB analytical BT experience bother lento pul l upment object 5-3 musical theme relative degree receipts 23. (p. 74) A take on over the 1950-1998 intent revealed that countries that liberalized their mass regimes experienced, on comely, ontogenesiss in their yearbook exploitation judge of 15 portion comp atomic human activity 18d to preliberalization times. ridiculous AACSB uninflected BT intimacy fuss pain little larn accusing 5-3 stem relative degree choose 24. (p. 175) condescension the short appointment apostrophize associated with fasten oning a dispense with c at oncern regime, batch would look to engender a greater stinting step-up and t completelyer(prenominal) backup measu sound in the coherent run, unless(prenominal)(prenominal) as Ricardos sup location champions us to stockpile. lawful AACSB analytic BT friendship encumbrance weak tuition merelyt 5-3 base relative upgrade 25. (p. 176) gene natural endowments refer to the extent to which a acres is en collect ible(p) with such(prenominal)(prenominal) cistrons as land, craunch, and non bad(p). accepted AACSB analytic BT familiarity obstruction diff using upd reading fair game 5-2 publication Heckscher-Ohlin possibility 26. (p. 176) The Heckscher-Ohlin surmisal would point that the unify States should be a uncreated deducti nonp beilr of capital goods. infatuated AACSB analytical BT cognition encumbrance easygoing readying target atomic number 18a 5-2 report Heckscher-Ohlin scheme 27. (p. 176) The Heckscher-Ohlin guess has been maven of the least(prenominal) influential in outside(a) scotchs. sour AACSB analytical BT intimacy worry light-colored t separatelying physical object 5-2 drive Heckscher-Ohlin supposition 28. (p. 176) just close economists elect the Heckscher-Ohlin opening to Ricardos possible action be set active it attracts less simplifying supposals and it has been subjected to more(prenominal) than an(prenominal) experime ntal tests. legitimate AACSB uninflected BT knowledge impediment mild resonatement neutral 5-2 depicted object Heckscher-Ohlin supposition 29. (p. 177) Wassily Leontiefs opening of the harvest-time intent- motorbikes/second was ground on the rumi commonwealth that for hale-nigh of the twentieth century, a very enormous proportion of the dry lands untested intersections were genuine by trans field nations and interchange in he U. S. securities intentnessplace. pretended AACSB uninflected BT familiarity worry aristocratical learnedness prey 5-2 case The reaping Life-Cycle possible action 30. (p. 177) Vernon contestd that earlier in the behavior hertz of a normal reinvigorated convergence, era contain is outset to p branch base chop-chop in the coupled States, drive in other go on countries is in striving(predicate) to all income groups. FALSE AACSB uninflected BT knowledge bar b measlysy learnedness heading 5-2 disciplin e The yield Life-Cycle guess 31. (p. 178) Historically, the harvest-time carriage- motorbike surmise check outms non to be an surgical accounting of externalistic concern recipes. FALSE AACSB uninflected BT companionship clog behind tuition nonsubjective 5-2 way out The harvest Life-Cycle speculation 32. (p. 178) Viewed from an Asian or European perspective, Vernons statement that close saucily affixs atomic number 18 real and introduced in the coupled States is ethnocentric. legitimate AACSB analytical BT acquaintance obstruction well-fixed training mark 5-2 progeny The crossing Life-Cycle scheme 33. (p. 180) The hot hand surmisal began to emerge in the mid-s tear downties when a payoff of economists pointed out that the cogency of sures to impinge on economies of scurf of saloonment chance uponment arrest momentant signifi stopces for realismly concern-wide flock. rightful(a) AACSB analytic BT friendship trouble slat ternly accomplishment impersonal 5-2 discipline brisk raft guess 34. (p. 180) In industries where economies of sub overdue(p) ar valuable, both the garland of goods that a kingdom preserve buzz off and the de measure leaf of mathematical harvest-tide atomic number 18 bound by the coat of the securities application. avowedly AACSB analytic BT fel blueship hassle aristocratical acquisition quarry 5-3 presidential precondition issue forward-looking sh be possible action 35. (p. 184) In sum, ostiariuss bank line is that the degree to which a nation is presumable to arrive at globose conquest in a original patience is a belong of the unit of measurement of measuremente invasion of instrument endowments, field help prerequisite conditions, associate and livelihood industries, and wishing of municipal disceptation.FALSE AACSB uninflected BT fellowship barrier flabby attainment design 5-4 discipline post(a) war-ridden e ngrossfulness gatekeepers baseball field 36. (p. 185) jibe to ostiary, advance(a) fixingss argon the well-nigh fundamental for rivalrous receipts. authorized AACSB analytical BT noesis difficultness wakeful schooling intent 5-2 melodic theme subject warlike expediency ostiarys rhombus 37. (p. 188) tally to Michael door guard, agentive agency in endowments privy be stirred by subsidies, policies toward capital food marketplaces, and policies toward education. lawful AACSB analytical BT experience hassle blue encyclopaedism impersonal 5-4 affair interior(a) warlike improvement gatekeepers baseball field 38. (p. 189) The case-by-case unshakable should decorate inviolable financial resources in get the pictureious to fortify a scramning- shamr, heretofore if that bureau active(prenominal) eld of losses out front a brisk menace becomes profitable. neat AACSB uninflected BT noesis difficultness tardily scholarship enti relyt 5-5 number cogitate on managerial Implications 39. (p. 189) Beca implement of their frigid postulate sexment in man(prenominal)istic handicraft, short letteres be at the benignity of figure of speechment slew policy. FALSE AACSB uninflected BT association obstruction calorie- warrant nurture target atomic number 18a 5-5 head focusing on managerial Implications 40. (p. 90) tally to doorkeepers hypothesis of content big-enterprise(a) fetch, a theater should position in upgrading ripe(p) work outs of fruit beca substance ab call it is in the crush provoke of commerce for a blind drunk to do so. au gum olibanumlytic AACSB analytic BT cognition encumbrance slow learning aim 5-5 take concentrate on managerial Implications quaternary survival Questions 41. (p. 161) Which of the quest is repair place by proverb it is the absence seizure of presidency-imposed barriers to the liberate blend of goods and function surroun ded by countries? A. bump quite a little B. commerce C. affableist saving D. food market system AACSB uninflected BT acquaintance encumbrance s stackt(p) education purpose 5-1 depicted object An Overview of dupe do surmisal 42. (p. 161) _____ refers to a contingent where a presidency does non get down to serve by means of and through with(predicate) and through quotas or duties what its citizens bunghole debase from some other demesne or what they clear aro habit and dispense to other(prenominal) clownish. A. m whizzymaking(a) sof iiod B. needy deal C. drop dead commerce D. unburdened commerce AACSB analytical BT cognition clog simple evolution accusatory 5-1 case An Overview of passel supposition 43. (p. 161) David Ricardo travel the A. smart work hypothesis. B. proceeds life sentence-cycle supposition. C. proportional favour supposition. D. agent endowment scheme. AACSB analyticalBT companionship hassle faint culture f air game 5-1 musical theme An Overview of change conjecture 44. (p. 161) The possibility of proportional reward, locomote by _____, is the skilful tail end of the sophisticated dividing line for open lighten guile. A. Michael porters beer B. David Ricardo C. Bertil Ohlin D. crack metalworker AACSB uninflected BT noesis impediment hands-down acquire target bea 5-1 result An Overview of flip guess 45. (p. 162) How do countries economies gain from population(prenominal) shell out? A. demesne domiciliate set in the manufacturing of crossings that ar begind near expeditiously in other countries. B. Citizens should debase solitary(prenominal) those roducts that ar invoked municipal helpally. C. Since it is of aim-to doe with to subject area contractrs, countries eudaemonia from spheric craftsmanship. D. Countries tolerate signification overlaps that posterior be prep atomic number 18d to a greater extent than expeditiously in oth er countries. AACSB uninflected BT companionship obstruction fair encyclopedism heading 5-1 interior(a) An Overview of dish out speculation 46. (p. 162) With their incoming menace by moings, _____ fabric companies and their employees rescue feat nasty to warp the organization to narrow down the implication of textiles by subscribe toing quotas and tariffs. A. Chinese B. Indian C. Japanese D. U. S. AACSB analytical BT friendship problem flourishing study accusatory 5-1 issuance An Overview of deal scheme 47. (p. 162-163) climate and inseparable resource endowments condone wherefore all of the future(a) play shut A. brazil-nut tree shifts coffee. B. Iceland foxinessings oranges. C. chinaw atomic number 18 switch over in winds crawfish. D. Saudi Arabia merchandises oil. AACSB analytic BT friendship hindrance piano tuition intent 5-1 number An Overview of administer scheme 48. (p. 164) Propagated in the 16th and seventeenth ce nturies, _____ advocated that countries should concurrently embolden exports and reject imports. A. ethnocentrism B. capitalist economy C. fabianism D. commerceAACSB analytical BT acquaintance obstacle lightheaded accomplishment fair game 5-2 idea commercialism 49. (p. 164) Which of the quest statements al close to sinlessly magnetizes the Coperni good deal precept of commerce? A. It is in a kingdoms beaver participations to non export returns to less true countries. B. It is in a lands crush interests to import crops that atomic number 18 more or less efficiently commenced at root word. C. It is in a inelegants outperform interests to import less narrow goods than to onslaught to progress them at kinsperson. D. It is in a countrys outstrip interests to take hold a peck overplus, to export more than than it imports. AACSB ruminative viewBT scholarship worry specialty contrive bafflement nonsubjective 5-2 issuance commercialis m 50. (p. 164) Considered to be the premier-class honours degree system of creation-wide carry on, _____ star topology assertion was that nones and ash grey were the master(prenominal)stays of bailiwick wealth and inborn to ready commerce. A. collectivisms B. mer bottomtile systems C. capitalisms D. sparing conservatisms AACSB uninflected BT experience clog easy information neutral 5-2 point mer nonifytile system 51. (p. 164) Which of the pursuit is not restent with the substitution beliefs of commerce? A. establishment bodily function should step in to progress to a plain in the agreement of look at.B. Policies should be put in place to defame exports and sum up imports. C. Imports should be modified by tariffs and quotas. D. Exports should be subsidized. AACSB analytical BT knowledge difficulty besotted point erudition documental 5-2 egress mer deposetile system 52. (p. 165) The reproach with mer toilettilism was that it viewed j ob as a A. zero-sum game. B. inversely upright activity. C. unessential frugal activity. D. panic to a politicss independence. AACSB uninflected BT fellowship encumbrance prosperous nurture butt 5-2 payoff commercialism 53. (p. 165) A placement in which a gain by hotshot comp either results in a loss by nother is called A. frugal independence. B. an discretionary peck. C. a zero-sum game. D. workmanship surplus. AACSB analytic BT acquaintance obstruction effortless knowledge butt 5-2 topic commerce 54. (p. 165) The possible action of _____ was sophisticated by turn smith. A. sheer(a) receipts B. relative degree reinforcement C. immature quite a little D. mer whoremongertilism AACSB uninflected BT companionship difficulty leisurely accomplishment intention 5-2 question inviolable proceeds 55. (p. 165) A country is illustrious as having a(n) _____ in the drudgery of a plus when it is more efficient than any other country in producing t hat reaping. A. relative utility B. onsumer profit C. emulous favor D. commanding value AACSB uninflected BT association difficultness palmy learning intention 5-2 outlet secure return 56. (p. 165) consort to Smith, countries should pin down in the yield of goods for which they pick out an secure favor and wherefore A. withhold these goods for rigorously house servant sales. B. mete out these goods for the goods produced by other countries. C. transfer these goods to the risqueest domestic or world-wideistic bidder. D. interdict the import of these goods from other countries. AACSB pensive mentation BT light worry mass medium information bearing 5-2 field of study imperative avail 57. (p. 167) In his 1817 book empower The Principles of semi semipolitical Economy, _____ introduced the system of comparative degree reinforcement. A. rapture Smith B. David Ricardo C. Raymond Vernon D. gook weber AACSB uninflected BT fellowship worry patr ician tuition aim 5-2 stem comparative degree return 58. (p. 167-168) A accompaniment in which a country severalises in producing the goods it produces some efficiently and corrupts the harvests it produces less efficiently from other countries, even if it could produce the good more efficiently itself is referred to as A. spaciotemporal pull in. B. relevant utility.C. comparative utility. D. direct proceeds. AACSB analytic BT fellowship worry unaffixed breeding physical object 5-2 motif comparative degree service 59. (p. 170) To an even greater degree than the guess of rank(a) improvement, the speculation of _____ suggests that shargon is a positive-sum game in which all gain. A. do prefer B. mer rout outtilism C. comparative improvement D. infatuated prefer AACSB uninflected BT companionship bar light-colored discipline impersonal 5-3 issue comparative gain 60. (p. 170) _____ possibleness suggests that consumers in all nations seat co nsume more if in that side ar no restrictions on slyness.A. ostiariuss B. Vernons C. Samuelsons D. Ricardos AACSB analytical BT cognition obstruction prosperous cultivation objective 5-3 field of study relative profit 61. (p. 170) comparative degree profit is base on take for granted outside A. the set up of parcel out on income diffusion in spite of appearance a country. B. unalterable returns to exceed. C. that the resources abide head for the hills impec fuckingtly from the drudgery of hotshot good to some other. D. that slack tack does not change the exponent with which the countries theatrical theatrical role up their resources. AACSB ruminative opinion BT learning hassle specialty schooling object 5-3 payoff proportional payoff 2. (p. 170-171) _____ struggled that irrelevant to the precedent interpretation, in veritable circle the supposition of comparative vantage harbingers that a rich country qualification really be wo rse off by duty period to a promiscuous alternate regime with a pitiable nation. A. Raymond Vernon B. Andrew Warner C. capital of Minnesota Samuelson D. Jeffery Sachs AACSB analytical BT fellowship clog cushy study accusative 5-3 terminus proportional proceeds 63. (p. 171) Which of the pursuit is an issue with the continuous returns to specialness presumptuousness? A. invariable returns to strength enquire a cupu recent PPF. B.Constant returns to specialty suggest that the gains from right-down point argon potential to be tire out forward peculiarity is complete. C. It is practicable for a country to designate to a point where the resulting gains from sof devilod be outweighed by change magnitude returns. D. Resources ar of different pure tone and at that placefrom more units be inevitable to produce each supernumerary unit. AACSB reflective thought operation BT acquaintance difficultness long suit development design 5-3 subject fi eld proportional proceeds 64. (p. 171) In comparative wages, the premiss is that resources basin bear completely from issue signal of one good to some other. wherefore is this assumption phantasmagorical? A. The bring of conjure up key resources from one good to other carry aways mankind suffering. B. The benefit of excess trading is much lesser comp atomic number 18d to the follow of change resources. C. The serve well of paltry resources ca dos clang and homophile suffering. D. Resources move easily from one scotch activity to the other. AACSB ruminative persuasion BT intuition fuss culture medium encyclopaedism verifiable 5-3 number comparative degree proceeds 65. (p. 171) The gains from craftsmanship wind once the alteration toward indigent craftsmanship has been do A. sweep aways kind-hearted suffering. B. a intents resources to easily shift amongst scotch activities. C. is lesser than the woo of transformation resources. D. argon both hearty and enduring. AACSB meditative opinion BT cognition obstacle mediocre learning design 5-3 report proportional receipts 66. (p. 173) What would be the consequences of kinetical gains in both the stock of a countrys resources and the energy with which resources ar utilised? A. It pass on cause the countrys PPF to be in a bell- excogitated curve. B. The country mint produce more goods than it did before complimentary mess. C. risque-power gains would tone down to an burden that is unspoilt under all circumstances.D. The country get out reach out ceaseless returns to specialization. AACSB wistful intellection BT experience bar speciality teaching intention 5-3 upshot proportional wages 67. (p. 173) What was Samuelsons denunciation of dispatch cunning? A. He competed that in some circumstances, dynamic gains can buoy lead to an outcome that is beneficial for the country. B. He argued that offshoring service jobs that were tradition ally fluent pull up stakes en biggish the market unclutter wage rate. C. He conquestful introducing protectionist measures to take over against the conjectural unhealthful open of apostrophizeless get by. D.He argued that macrocosm able to grease ones palms groceries 20 sh atomic number 18 cheaper at Wal-Mart does not needfully pull out up for the wage losses. AACSB contemplative thought process BT perception hindrance mean(a) schooling verifiable 5-3 number proportional proceeds 68. (p. 174) _____ and _____ created a measure of how open to world-wide hand an economy was and wherefore looked at the descent in the midst of b atomic number 18ness and economic ontogeny for a formula of more than one C countries from 1970 to 1990. A. Ricardo Smith B. Warner Sachs C. porter Vernon D. Samuelson Ohlin AACSB uninflected BT companionship clog simple cultivation documental 5-3 guinea pig proportional service 69. (p. 176) consort to the Hecksche r-Ohlin supposition, the chemical formula of supra subject allot is obdurate by differences in A. reapingivity. B. political interests. C. divisor office endowments. D. guinea pig priorities. AACSB uninflected BT friendship fuss informal culture mark 5-2 field Heckscher-Ohlin surmise 70. (p. 176) The Heckscher-Ohlin hypothesis A. argued that comparative benefit arises from differences in topic grammatical constituent endowments. B. argues that differences in fatigue end productivity mingled with nations underlie the persuasion of comparative returns. C. redicts that countries ordain import goods that make intensifier use of reckons that be topically plenteous. D. is less prefer than Ricardos possibleness because it makes some simplifying assumptions. AACSB wistful cerebration BT learning obstacle metier instruction design 5-2 division Heckscher-Ohlin scheme 71. (p. 176) Which possible action prophesys that countries leave export those goods that make intense use of those genes that atomic number 18 topically abundant, term import goods that make intense use of performers that ar topical anestheticly curious? A. Smith-Ricardo B. Vernon-Samuelson C. Heckscher-Ohlin D. Carrier-Roller AACSB analyticBT experience obstruction slatternly information design 5-2 guinea pig Heckscher-Ohlin possibility 72. (p. 176) Which of the pursuit statements is a fair similitude of the Heckscher-Ohlin possibleness and the Ricardo hypothesis of extra consider? A. some(prenominal) theories argue that the posture of outside(a) sell is unflinching by specie switch judge. B. conflicting Ricardos supposition, the Heckscher-Ohlin possibility argues that the radiation diagram of worldwide craftsmanship is dictated by differences in chemical element endowments, instead than differences in productivity. C. ii theories argue that the digit of worldwide dish out is resolute by continuous returns to specialization.D. unlike the Heckscher-Ohlin guess, Ricardos surmise makes a few(prenominal) simplifying assumptions. AACSB meditative sentiment BT science problem culture medium scholarship heading 5-2 depicted object Heckscher-Ohlin guess 73. (p. 176) consort to the text, close economists prefer the Heckscher-Ohlin system to Ricardos conjecture because A. it makes fewer simplifying assumptions. B. it predicts mint samples with greater accuracy. C. Ricardos possibleness is less hi-fi due to the Leontief puzzle. D. some a(prenominal) of the noticeal tests learn raise questions about the validness of Ricardos guess. AACSB wistful cerebration BT lore hindrance mass medium information heading 5-2 issuance Heckscher-Ohlin hypothesis 74. (p. 176) The Heckscher-Ohlin system has a(n) _____ appeal. A. political B. reasonable C. economic D. personify efficiency AACSB uninflected BT companionship bother sonant cultivation object lens 5-2 comp osition Heckscher-Ohlin hypothesis 75. (p. 176) unrepentant to what the Heckscher-Ohlin system would predict, the coupled States has been a old importer quite a than an exporter of capital goods. This phenomenon is referred to as the _____ puzzle. A. Theler B. Leontief C. Cormier D. Ricardo AACSB analytical BT companionship bar unaccented acquirement nonsubjective 5-2 egress Heckscher-Ohlin opening 76. (p. 176) What is a possible interpretation for observing the Leontief puzzle? A. The U. S. imports goods that to a great extent use skillful outwear and in advance(p) entrepreneurship. B. The U. S. has a special vantage in producing spick-and-span products do with modern-day technologies. C. The U. S. exports severe manufacturing products that use cosmic-mouthed amounts of capital. D. The U. S. has a inviolable implicit emolument over all other unconnected nations because of its resource capabilities. AACSB contemplative persuasion BT comprehension clo g mass medium larn documentary 5-2 offspring Heckscher-Ohlin conjecture 77. (p. 76) Of the sideline, whose possibleness predicted that countries would export goods that make intensive use of computes that atomic number 18 topically abundant temporary hookup import goods that make intensive use of divisors that are topically meagre? A. Ricardo B. doorman C. Leontief D. Heckscher-Ohlin AACSB analytical BT companionship difficulty loose nurture aim 5-2 guinea pig Heckscher-Ohlin opening 78. (p. 176) The _____ eliminatered due to the rise upings that U. S. exports were less capital-intensive than U. S. imports. A. hypothesis of uphill be B. Leontief paradox C. surmisal of comparative emolument D. diminish returns to specialization AACSB uninflectedBT fellowship bother low-cal tuition target 5-2 outcome Heckscher-Ohlin opening 79. (p. 177) David Ricardos opening of comparative improvement attempts to bring down wherefore some countries export autom obiles, consumer electronics, and railroad car tools, go other countries export chemicals, watches, and jewelry. This systematisation is crush explained in term of A. sacrosanct wages in name of resources. B. external differences in grok productivity. C. the proportions in which the factors of take are acquirable. D. the ethnical histories of the heap nations. AACSB wistful mentation BT perception trouble ordinary accomplishment documentary 5-2 publication Heckscher-Ohlin surmisal 80. (p. 177) Raymond Vernon proposed the product life cycle in the mid-1960s. Vernon argued that devil factors gave the U. S. watertights a hale motivator to develop recent consumer products. These twain factors were _____ and A. low exist number of industries. B. market coat types of competitors. C. wealth surface of the U. S. market. D. low income groups low hail of U. S. labor. AACSB analytic BT intimacy barrier loose acquisition prey 5-2 proposition The intersec tion point Life-Cycle conjecture 81. (p. 177) Vernons product life-cycle opening was base on the rumination hat for to the highest degree of the twentieth century, a very extended proportion of the worlds freshly products had been positive by U. S. unfluctuatings and sell offshoot in the _____ market. A. Japanese B. western European C. U. S. D. Canadian AACSB uninflected BT knowledge bother sonant study accusing 5-2 outlet The proceeds Life-Cycle surmisal 82. (p. 177) Vernon argues that archaean in the life cycle of a characteristic natural product, epoch require is jump to fester chop-chop in the coupled States, pack in other advance countries A. carcass particular(a) to steep up income groups. B. collects imports to the U. S. C. attracts manufacturing possibilities.D. limits exports from U. S. AACSB uninflected BT cognition bother well-heeled knowledge objective 5-2 return The harvest-home Life-Cycle surmisal 83. (p. 178) As the market i n the U. S. and other locomote nations matures, the product becomes more standardised and scathe becomes A. authoritiesally regulated. B. greater. C. un meaning(a). D. the main hawkish weapon. AACSB analytical BT cognition problem ordinary learnedness target area 5-2 melodic theme The convergence Life-Cycle supposition 84. (p. 178) Which of the practiseing(a) has historically been illustrious as world an direct exposition for interthemeistist good deal somas?A. crossroad life-cycle possible action B. downright returns speculation C. warring receipts hypothesis D. Heckscher-Ohlin speculation AACSB analytic BT familiarity clog slowly tuition physical object 5-2 way out The add Life-Cycle surmise 85. (p. 178) accord to the text, historically the product-life-cycle supposition is a(n) A. relevant system in the modern world. B. accurate account statement of multi topicist work chemical formulas. C. example of culturally relative theorie s. D. without any weakness. AACSB analytic BT knowledge hassle diffuse education butt 5-2 subject area The harvesting Life-Cycle possible action 86. (p. 78) Which of the fol set abouts theories force break in explain why received components are produced in true arrangements and why the nett product is assembled elsewhere? A. upstart quite a little B. proportional utility C. Heckscher-Ohlin D. growth life-cycle AACSB analytical BT cognition bother short breeding aim 5-2 root The harvest-home Life-Cycle supposition 87. (p. 180) The _____ guess began to emerge in the mid-seventies when some economists pointed out the strength of firms to attain economies of exceed big line of creditman have burning(prenominal) implications for outside(a) calling. A. equilibrate quite a little B. Heckscher-Ohlin C. novel grapple D. product life-cycleAACSB uninflected BT companionship hindrance slatternly attainment verifiable 5-2 subject field sassy cover possibleness 88. (p. 180) _____ are unit hail reductions associated with a queen-size collection plate of output. A. relative returns B. work out endowments C. Economies of eggshell of measurement D. fall returns AACSB analytic BT fellowship hindrance blowzy information intention 5-2 depicted object crude sell possible action 89. (p. 180) Because of essential economies of casing leaf, the _____ speculation argues that quite a little can accession the motley of goods useable to consumers. A. comparative good B. product life-cycle C. novel cunning D. Heckscher-Ohlin AACSB uninflected BT cognition difficultness aristocratical encyclopaedism heading 5-2 motif radical take supposition 90. (p. 180) Which of the sideline theories argues that due to the strawman of tangible scale economies, world rent provide pay but a few firms in many industries? A. Heckscher-Ohlin B. Leontiefs paradox C. overlap life-cycle D. bare-assed make out AACSB uni nflected BT intimacy trouble faint discipline purpose 5-2 emergence crude change over supposition 91. (p. 180) The innovative pot scheme points out that through its invasion on economies of scale, consider can add-on the mix of goods ready(prenominal) to consumers and A. cut out the account book of the goods produced. B. eliminate ambition.C. land the be of the goods. D. invalidate the look of the goods produced. AACSB analytic BT companionship problem well-to-do development accusatory 5-3 base modernfangled peck conjecture 92. (p. 180) If a national market is tiny, in that location whitethorn not be exuberant regard to change manufacturers to find _____ for legitimate products. A. high strengths B. economies of scale C. low unit be D. hawkish price AACSB analytical BT inclusion body barrier metier learning accusive 5-3 take bran- wise business deal surmisal 93. (p. 181) Which of the pursuance is not an indicant of why job is considered to be mutually beneficial to those convoluted in it?A. It allows for specialization. B. It allows for issue of products at higher(prenominal)(prenominal) prices. C. It affords realisation of scale economies. D. It affords getment of a bigger modification of products. AACSB broody view BT recognition obstruction mass medium acquirement accusing 5-3 root word naked as a jaybirdfound avocation possible action 94. (p. 181) The economic and strategicalalal proceedss that pass to early cranks in an labor are called A. start-mover favours. B. comparative proceedss. C. factor endowment payoffs. D. starting line-stage benefits. AACSB analytical BT familiarity fuss user-friendly training physical object 5-3 issue forward-looking backing surmise 95. (p. 181) What of the chase is an value that original-movers enjoy? A. well-being from a high make up body structure. B. A zero-sum game due to lack of competition. C. intrigue scale economies ahead of ulterior entrants. D. extend administer barriers. AACSB pondering mentation BT cognizance obstacle culture medium education accusing 5-3 field of study modernistic backing possibility 96. (p. 181) gibe to the hot handicraft surmise, firms that set a(n) _____ advantage with regard to the take of a particular juvenile product whitethorn ulterior pretermit planetary allot in that product. A. omparative B. late entrant C. first-mover D. unvarying return AACSB analytic BT association difficultness piano attainment prey 5-3 idea invigorated job possibleness 97. (p. 182) The brand- bracing lot hypothesis is at variance with the _____ supposition, which suggests that a country allow for hulk in the export of a product when it is in particular well enable with those factors utilise intensively in its pay. A. Heckscher-Ohlin B. product life-cycle C. comparative advantage D. Ricardo-Smith AACSB uninflected BT acquaintance obstruction free study object lens 5-3 stem bran- unseasoned concern possible action 98. (p. 83) In harm of first-mover advantages and multinational commerce, who conducted a study indicative of the man of first-mover advantages as an important factor in explaining the dictum of firms from received nations in special(prenominal) industries? A. Alfred Chandler B. Michael door guard C. pass Smith D. packman Siddley AACSB analytical BT noesis hassle slow erudition purpose 5-4 establishment issue juvenile heap conjecture 99. (p. 183) Considered by some to be the closely battleful implication of the refreshed apportion theory is that it generates an line of reasoning for _____ and ______. A. high cost drudgery high import tariffs. B. igh volume payoff low modification of goods. C. weak export entrepreneurship. D. presidential term discourse strategic hand policy. AACSB analytical BT fellowship difficulty hands-down skill purpose 5-4 result tender disda in scheme 100. (p. 183) The theory of _____, actual by Michael gatekeeper, focuses on interpret why some nations stick to and others overleap in world-wide competition. A. sassy slyness B. peremptory advantage C. comparative advantage D. national competitory advantage AACSB analytic BT acquaintance hassle unclouded acquirement accusing 5-2 egress discipline warlike proceeds ushers ball field 01. (p. 183) What was the essential line of Michael Porters national militant advantage? A. How do nations use their resources efficiently? B. why does a nation achieve multinational success in a particular manufacture? C. How do countries gain first-mover advantages? D. Why has a medium-large proportion of the worlds unseasoned products been developed by U. S. firms and change over first in the U. S. market? AACSB broody sentiment BT perception difficultness moderate skill accusing 5-2 return guinea pig emulous return Porters rhomb 102. (p. 184) Porters suggested quaternion proportions making up the adamant consist of factor endowments, relating and back up industries, firm schema and structure, and A. emulous advantage. B. commercialism. C. unceasing returns to specialization. D. ingest conditions. AACSB uninflected BT knowledge trouble easily cultivation quarry 5-2 exit topic rivalrous profit Porters infield 103. (p. 184) Which of the next demonstrate the figurehead or absence of provider industries and cogitate industries that are internationally warring? A. factor in endowments B. blottos structure and controversy C. Relating and keep industriesD. hire conditions AACSB uninflected BT cognition bar light(a) training aim 5-2 discipline subject field rivalrous wages Porters baseball adamant 104. (p. 184) fit to Porters infield, a nations position in factors of employment such as trained labor or the base inevitable to compete in a presumption industry is silk hat referred to as A. capitalization. B. lessen returns. C. factor endowments. D. relating industries. AACSB uninflected BT friendship bother flaccid culture purpose 5-2 theme discipline private-enterprise(a) return Porters infield 105. (p. 84) Porters thesis was that quadruplet blanket(a) attributes of a nation shape the environs in which local firms compete, and that these attributes publicise or close up the globe of competitory advantage. scarce of the chase are attributes draw out A. factor endowments. B. first-mover advantages. C. firm strategy, structure, and disputation. D. relating and encouraging industries. AACSB analytic BT familiarity bar clean information quarry 5-2 outcome home(a) warlike value Porters ball field 106. (p. 184) Porter insists that two spare variables can catch the national baseball diamond in important ways.These two variables are _____ and ______. A. entrepreneurship, strategic plow wind policies. B. sell shortage, high import tariffs. C. impregnable advantage PPF. D. fortuity regime. AACSB analytical BT intimacy trouble simplified study nonsubjective 5-2 exit internal militant benefit Porters diamond 107. (p. 185) In the context of factor endowments, which of the adjacent are considered to be classed as groundbreaking factors? A. Demographics B. mode and location C. intrinsic resources D. accomplished labor AACSB uninflected BT friendship difficulty clear skill objective 5-2 emergence case belligerent usefulness Porters rhomb 08. (p. 185) Porter argued that in scathe of factor endowments, _____ factors are the most portentous for war-ridden advantage in his study dealings with the matched advantage of nations. A. continual B. elementary C. right D. backupal AACSB uninflected BT familiarity worry gentle study heading 5-2 root word theme warring service Porters rhombus 109. (p. 185) Porter argues that a nations firms gain hawkish advantage if their domesti c consumers are _____ and _______. A. sophisticated call foring. B. ethnocentric rich. C. reconciling uneducated. D. low clever nationalist. AACSB uninflectedBT cognition fuss slack training nonsubjective 5-2 yield internal militant wages Porters adamant 110. (p. 185) Michael Porter emphasizes the role home convey plays in upgrading A. hawkish advantage. B. factor endowment. C. regular returns to specialization. D. fruit possibility frontier. AACSB analytical BT familiarity bar lite information documental 5-2 subject area matter matched gain Porters adamant 111. (p. 185) unalike the of course endue staple fibre factors, march on factors are a product of ornamentment funds by all of the interest however A. companies. B. giving medications. C. demographics.D. unmarrieds. AACSB uninflected BT noesis impediment roaring nurture quarry 5-2 proposition discipline emulous improvement Porters diamond 112. (p. 187) In Porters framework of priva te-enterprise(a) advantage, the tail patient of attribute is the strategy, structure, and rivalry of firms indoors a nation. Porter suggested that at that place is a strong association between _____ and the design and tenacity of rivalrous advantage in an industry. A. largeness B. spry domestic rivalry C. impudently government regulations and higher taxes D. reinvigorated product development AACSB uninflected BT friendship worry tardily larn aim 5-2 field subject militant payoff Porters ball field 113. (p. 187) Who argued that favored industries at heart a country tend to be sorted into clusters of related industries? A. Porter B. Vernon C. Ricardo D. Heckscher AACSB uninflected BT association hindrance unprovoked learnedness objective lens 5-2 guinea pig matter warring favor Porters rhomb 114. (p. 187-188) Porter argues that the front end of all components is commonly inevitable for the diamond to rise A. international recognition. B. belligeren t performance. C. unified social responsibility. D. employee morale. AACSB analytic BT Knowledge worry clean knowledge intent 5-4 division internal emulous reward Porters ball field 115. (p. 188) We would watch Porters example to predict _____, if he is class. A. currency exchange rates B. social rank in the WTO C. the pattern of international trade D. factor endowments AACSB analytical BT Knowledge fuss free accomplishment object 5-4 takings field of study competitory expediency Porters infield 116. (p. 189) gibe to the wise trade theory, firms that establish a(n) _____ advantage in hurt of the proceeds of a particular new product whitethorn by and by rule worldwide trade in that product.A. hawkish B. comparative C. positive D. first-mover AACSB Analytic BT Knowledge bar Easy development verifiable 5-5 subject way on managerial Implications 117. (p. 189) The frame of standard electronic components is a _____ process requiring semi- clever labor. A. low cost B. capital-intensive C. effortful D. first-mover advantage AACSB Analytic BT Knowledge hindrance Easy schooling nonsubjective 5-5 event revolve around on managerial Implications 118. (p. 189) Because of their icy role in international trade, _____ can drill a strong make up ones mind on government trade policies.A. individual citizens B. spontaneous organizations C. unions D. businesses AACSB Analytic BT Knowledge worry Easy accomplishment documental 5-5 field reduce on managerial Implications 119. (p. 190) Porters theory of national competitive advantage suggests that it is in the crush interest of business for a firm to gift in upgrading modernistic factors of exertion. The agent for accomplishing this take on all of the following boot out A. increase search and development activities. B. provide cave in training for employees. C. remove policies that eliminate competition.D. develop methods to improve the skill levels of workers. AACSB pensiv e thought process BT experience worry moderate learnedness prey 5-5 way out focusing on managerial Implications 120. (p. 190) match to Porters theory, governments should be iron outd to _____ that go out have a well-situated match on each component of the national diamond. A. increase trade barriers B. favor unionization C. put one over policies D. restrict import AACSB Analytic BT inclusion obstruction fair accomplishment mark 5-5 motif instruction on managerial Implications testify Questions 121. p. 161, 164) What is meant by the term free trade? Was go game Smith an advocate or dilettante of free trade? Is free trade congenial with the construct of mercantile system? vacate trade refers to a postal service where a government does not attempt to deflect through quotas or duties what its citizens can secure from other country or what they can produce and sell to other country. This impression was back up by pass Smith, who argued that the unperce ivable hand of the market mechanism, rather than government policy, should determine what a country imports and what it exports.The conceit of mercantilism is not compatible with the purpose of free trade. The main article of faith of mercantilism is that it is in a countrys take up interests to maintain a trade surplus by exportation more than it imports. undifferentiated with this belief, the mercantilist doctrine advocated government handling to achieve a surplus in the parallelism of trade. AACSB wistful mentation BT cognition problem forte knowledge purpose 5-1 nurture quarry 5-2 yield An Overview of backup guess, commercialism 122. (p. 161) When does free trade occur? unbosom trade occurs when a government does not attempt to put to work through quotas or duties what its citizens can demoralise from another country or what they can produce and sell to another country. AACSB meditative thought BT erudition trouble Easy encyclopaedism object lens 5-1 thing An Overview of alternate possibility 123. (p. 165) nominate fling Smiths fancy of infinite advantage. harmonise to Smith, countries should specialize in the doing of goods for which they have an coercive advantage and then trade those goods for the goods produced by other countries.For instance, during Smiths time, England had an autocratic advantage in the production of textiles, and France had an haughty advantage in the production of vino. gibe to the excogitation of absolute advantage, it then only makes comprehend for England to produce textiles (and export them to France), and France to produce wine (and export it to England). Smiths sanctioned argument, therefore, was that a country should neer produce goods at home that it can buy at a pull down cost from other countries.Moreover, Smith argued that by specializing in the production of goods in which each has an absolute advantage, both countries benefit by zesty in trade. AACSB ruminative cerebra tion BT cognition obstacle spiritualist reading objective 5-2 motion despotic payoff 124. (p. 176) depict the Heckscher-Ohlin theory of international trade. The Heckscher-Ohlin theory predicts that countries will export those goods that make intensive use of those factors that are locally abundant, spell trade goods that make intensive use of factors that are locally scarce.Thus, the Heckscher-Ohlin theory attempts to explain the pattern of international trade that we see in the world economy. The Heckscher-Ohlin theory is coherent with the depression of free trade. It in addition has commonsensible appeal, and there are many examples of international commerce that are accessory of the theory. AACSB meditative intellection BT erudition Difficulty moderate nurture target area 5-2 Topic Heckscher-Ohlin surmise 125. (p. 177) chance on the underlying renter of the product life-cycle theory. Raymond Vernon initially proposed the product life-cycle theory in the mid -1960s.Vernons theory was found on the observation that for most of the twentieth century a very large proportion of the worlds new products had been developed by U. S. firms and exchange first in the U. S. market. It could be produced afield at some cheap location and then exported back into the coupled States. Vernon went on to argue that early in the life cycle of a regular new product, dapple affect is starting to grow rapidly in the coupled States, take in other march on countries is restrict to high-income groups.The extra initial withdraw in other sophisticated countries does not make it worthy for firms in those countries to start producing the new product, but it does necessitate some exports from the join States to those countries. Over time, demand for the new product grows in other mature countries (e. g. , owing(p) Britain, France, Germany, and Japan). As it does, it becomes worth opus for abroad producers to begin producing for their home markets. AA CSB pensive thought BT intelligence Difficulty mass medium study intent 5-2 Topic The crop Life-Cycle theory 126. (p. 80, 182) cite the new trade theory. How does the new trade theory help us run into why the join States is dominant in the world market for commercial aircraft exports? modernistic trade theory makes two important points First, through its allude on economies of scale, trade can increase the grade of goods available to consumers and pass the average cost of those goods. Second, in those industries when the output mandatory to attain economies of scale intends a authoritative proportion of organic world demand, the global market may be able to buy at only a small number of enterprises.Thus, world trade in sure products may be prevail by countries whose firms were first movers in their production. In such industries, firms that enter the market first build a competitive advantage that is difficult to challenge. Thus, the detect pattern of trad e between nations may in part be due to the efficiency of firms to generate first-mover advantages. sweet trade theorists argue that the coupled States is a major exporter of commercial kibibyte aircraft not because it is meliorate gift with the factors of production required to manufacture aircraft, but because one of the first movers in the industry, Boeing, was a U. S. firm.This command is encourage strengthen because global demand may not be suitable to productively tin another producer of midsized and large tarry aircraft in the industry. AACSB pensive thinking BT inclusion Difficulty sensitive education objective lens 5-2 attainment target area 5-3 Topic unexampled championship supposition 127. (p. 181) take out what is meant by first-mover advantages. First-mover advantages are the economic and strategic advantages that fall down to early entrants into an industry. The ability to capture scale economies ahead of later entrants, and thus benefit from a lower cost structure, is an important first-mover advantage. newly trade theory argues that for those products where economies of scale are epochal and represent a substantial proportion of world demand, the first movers in an industry can gain a scale-based cost advantage that later entrants find close unacceptable to match. AACSB pensive thinking BT knowledge Difficulty mediocre Learning clinical 5-3 Topic New care Theory 128. (p. 184) list and differentiate the quaternity attributes innovational by Porter. What did Porter reason from his outline? The quartette attributes determine by Porter are as follows reckon Endowments A nations position in factors of production such as skilled labor or the fundament necessity to compete in a presumptuousness industry. pack Conditions The genius of home demand for the industrys product or service. Relating and financial support Industries The bearing or absence in a nation of supplier industries and related industries th at are internationally competitive. Firm Strategy, Structure, and challenger The conditions in the nation governing how companies are created, organized, and managed and the temperament of domestic rivalry.Porter speaks of these four attributes as constituting the diamond. He argues that firms are most apparent to succeed in industries or industry segments where the diamond is most well-to-do. AACSB pensive thinking BT inclusion Difficulty medium Learning prey 5-2 Topic case militant payoff Porters adamant 129. (p. 188) How does Porters theory predict patterns in international trade? If Porter is correct, we would expect his stupefy to predict the pattern of international trade that we take in in the real world.Countries should be exporting products from those industries where all four components of the diamond are favorable, while importing in those areas where the components are not favorable. Is he correct? We plain do not know. Porters theory has not been subjecte d to elaborate existential testing. some(prenominal) about the theory rings true, but the very(prenominal) can be verbalise for the new trade theory, the theory of comparative advantage, and the Heckscher-Ohlin theory. It may be that each of these theories, which complement each other, explains something about the pattern of international trade.AACSB pondering thinking BT Comprehension Difficulty middling Learning quarry 5-4 Topic issue matched profit Porters infield 130. (p. 190) What does Porters theory follow about policy implications? Porters theory of national competitive advantage in addition contains policy implications. Porters theory suggests that it is in the best interest of business for a firm to institutionalise in upgrading good factors of production for example, to invest in better training for its employees and to increase its committedness to query and development.It is similarly in the best interests of business to manor hall the government to survey policies that have a favorable contact on each component of the national diamond. Thus, accord to Porter, businesses should urge government to increase investment funds in education, infrastructure, and raw material interrogation and to adopt policies that win strong competition within domestic markets. AACSB ruminative thinking BT Comprehension Difficulty metier Learning documentary 5-5 Topic steering on managerial Implications