10 Questions
According to Adam Smith, why is trade undertaken by two or more countries?
Because of absolute advantage
According to David Ricardo, why is trade undertaken by two or more countries?
Because of comparative advantage
What is autarky?
The absence of trade
What are the reasons for specialization?
All of the above
What is the pattern of trade?
The type of commodities that are exported or imported
According to Adam Smith, why is trade undertaken by two or more countries?
Because of absolute advantage
What is autarky?
The absence of trade
According to Heckscher-Ohlin, why is trade undertaken by two or more countries?
Because of factor endowments
What are the reasons for specialization?
Better knowledge, resources, geographical advantage
What are gains from trade?
The increase in welfare resulting from international trade
Test your knowledge on the basis for trade, gains from trade, and the pattern of trade with this informative quiz. Learn about the reasons why countries engage in trade, including absolute and comparative advantage. Discover how particular resources, like sun, sea, and sand, contribute to tourism and trade in certain countries.
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