Questions and Answers
What does the theory of mercantilism advocate for a country?
Maintain a trade surplus by exporting more than importing
According to mercantilism, how does the theory view trade?
As a zero-sum game
How does international trade benefit a country according to trade theories?
By allowing specialization in products it can produce efficiently
What is one of the main criticisms of mercantilism as a trade theory?
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How does Adam Smith's Theory of Absolute Advantage differ from Ricardo's Theory of Comparative Advantage?
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What is an implication of a country specializing in products it can produce efficiently?
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According to the Heckscher-Ohlin Theory, countries will export goods that:
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What does the New Trade Theory suggest about trade and economies of scale?
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What is a key implication of the New Trade Theory regarding specialization?
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What is a critique of the Heckscher-Ohlin Theory compared to Ricardo's Theory of Comparative Advantage?
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How does Paul Samuelson critique free trade in relation to wages?
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Which trade theory suggests that countries should export goods based on their factor endowments?
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Which trade theory emphasizes the importance of a nation's competitive advantage in global trade?
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According to the Product Life Cycle Theory, where were products like Xerox photocopiers, TVs, and PCs developed in the twentieth century?
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What is one of the criticisms of the Product Life Cycle Theory today?
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Which trade theory focuses on a nation's ability to produce goods more efficiently than other nations?
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In the context of international trade theories, what does Adam Smith's Theory of Absolute Advantage emphasize?
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Which theory explains how nations can gain a competitive edge by having factors like skilled labor and advanced infrastructure?
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