International Trade and Investment Management Concepts Quiz

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Questions and Answers

Which concept helps to explain international trade?

  • Activist investing
  • Absolute advantage (correct)
  • Active management
  • Adverse selection

What is the branch of investment management that attempts to outperform other investors by selecting a limited number of assets and trading them regularly?

  • Adverse selection
  • Active management (correct)
  • Activist investing
  • Absolute advantage

What is the term used for fund managers who take a stake in a company and then agitate for a change of management or strategy to increase profits?

  • Activist investing (correct)
  • Adverse selection
  • Active management
  • Absolute advantage

What is the risk associated with insurance that is linked to asymmetric information?

<p>Adverse selection (D)</p> Signup and view all the answers

Which country should focus on making toasters if it is better at making them than another country?

<p>Country A (C)</p> Signup and view all the answers

Which type of investing involves selecting a limited number of assets and trading them regularly?

<p>Active investing (C)</p> Signup and view all the answers

What is the term for the risk associated with insurance that is linked to asymmetric information?

<p>Adverse selection (C)</p> Signup and view all the answers

If Country A is better at making kettles than Country B, which country should focus on making kettles?

<p>Country B (B)</p> Signup and view all the answers

What is the term used for fund managers who attempt to outperform other investors by selecting a limited number of assets and trading them regularly?

<p>Active fund managers (D)</p> Signup and view all the answers

What concept helps to explain international trade?

<p>Comparative advantage (B)</p> Signup and view all the answers

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