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</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</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</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</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</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</p> Signup and view all the answers

    What concept helps to explain international trade?

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

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