Podcast
Questions and Answers
What does the theory of mercantilism advocate for a country?
What does the theory of mercantilism advocate for a country?
- Maintain a trade surplus by exporting more than importing (correct)
- Avoid international trade completely
- Not focus on trade balance
- Maintain a trade deficit by importing more than exporting
According to mercantilism, how does the theory view trade?
According to mercantilism, how does the theory view trade?
- As a way to achieve global harmony
- As a win-win situation for all countries involved
- As a zero-sum game (correct)
- As an unpredictable economic activity
How does international trade benefit a country according to trade theories?
How does international trade benefit a country according to trade theories?
- By limiting imports and focusing on domestic production only
- By allowing specialization in products it can produce efficiently (correct)
- By exporting less than it imports
- By producing all goods domestically without any imports
What is one of the main criticisms of mercantilism as a trade theory?
What is one of the main criticisms of mercantilism as a trade theory?
How does Adam Smith's Theory of Absolute Advantage differ from Ricardo's Theory of Comparative Advantage?
How does Adam Smith's Theory of Absolute Advantage differ from Ricardo's Theory of Comparative Advantage?
What is an implication of a country specializing in products it can produce efficiently?
What is an implication of a country specializing in products it can produce efficiently?
According to the Heckscher-Ohlin Theory, countries will export goods that:
According to the Heckscher-Ohlin Theory, countries will export goods that:
What does the New Trade Theory suggest about trade and economies of scale?
What does the New Trade Theory suggest about trade and economies of scale?
What is a key implication of the New Trade Theory regarding specialization?
What is a key implication of the New Trade Theory regarding specialization?
What is a critique of the Heckscher-Ohlin Theory compared to Ricardo's Theory of Comparative Advantage?
What is a critique of the Heckscher-Ohlin Theory compared to Ricardo's Theory of Comparative Advantage?
How does Paul Samuelson critique free trade in relation to wages?
How does Paul Samuelson critique free trade in relation to wages?
Which trade theory suggests that countries should export goods based on their factor endowments?
Which trade theory suggests that countries should export goods based on their factor endowments?
Which trade theory emphasizes the importance of a nation's competitive advantage in global trade?
Which trade theory emphasizes the importance of a nation's competitive advantage in global trade?
According to the Product Life Cycle Theory, where were products like Xerox photocopiers, TVs, and PCs developed in the twentieth century?
According to the Product Life Cycle Theory, where were products like Xerox photocopiers, TVs, and PCs developed in the twentieth century?
What is one of the criticisms of the Product Life Cycle Theory today?
What is one of the criticisms of the Product Life Cycle Theory today?
Which trade theory focuses on a nation's ability to produce goods more efficiently than other nations?
Which trade theory focuses on a nation's ability to produce goods more efficiently than other nations?
In the context of international trade theories, what does Adam Smith's Theory of Absolute Advantage emphasize?
In the context of international trade theories, what does Adam Smith's Theory of Absolute Advantage emphasize?
Which theory explains how nations can gain a competitive edge by having factors like skilled labor and advanced infrastructure?
Which theory explains how nations can gain a competitive edge by having factors like skilled labor and advanced infrastructure?
