International Trade Theories Quiz

A trade theory where nations seek wealth by encouraging exports and discouraging imports.

When a nation exports more than it imports.

A nation's ability to produce a good/service more efficiently than any other nation.

Ability of a country to produce goods/services more efficiently relative to other goods/services than another country.

The belief that one nation's gain in wealth necessarily comes at another's expense.

A policy of prioritizing national interests in economic matters, often at the expense of other countries.

Tariffs and quotas enacted to control imports and exports.

Acquiring territories to use resources and markets for benefit of the colonizer.

Countries export goods requiring abundant, cheap resources; import goods requiring scarce resources.

Another name for Factor Proportions Theory.

A nation's resources categorized as labor and land/capital.

Theory that company exports initially, later invests directly abroad as the product matures.

First stage of International Product Life Cycle, high demand in developed countries.

International Product Life Cycle stage where domestic and foreign markets are fully aware of the product.

A stage of the international product lifecycle in which competition drives companies to lower prices to maintain sales.

Trade theory highlighting specialization, economies of scale, first-mover advantage, and potential government assistance to home companies.

Economic and strategic benefit from being the initial company in an industry, creating high barriers for competitors.

A nation's ability to excel in specific industries due to capacity for innovation and advancement within the industry.

A nation's resources that can initially spark production of a product, like natural resources or raw materials.

A nation's skilled workforce, technological infrastructure, and investments in education and innovation, leading to sustained competitive advantage.