Quiz Lecture 11

Which of the below are benefits of international trade.

• Greater choice of goods and services

• Important engine for job creation in many countries

• Reduce dependency on foreign imports

What did the successful implementation of mercantilism require?

• Maintain Trade Surplus

• Government Intervention

• Colonialism

• Materialism

Mercantilist nations acquired colonies around the world to serve as sources of what?

What name is given to the belief that a nation can increase its wealth only at the expense of other nations?

A nation that is able to produce a good more efficiently than other nations is said to have what?

• Competitive advantage

• Absolute advantage

• Comparative advantage

What does a nation have when it is unable to produce a good more efficiently than other nations but it can produce the good more efficiently than it can any other good?

• Competitive advantage

• Absolute advantage

• Comparative advantage

The theories of absolute advantage and comparative advantage say that nations benefit from trading because of the gains from what?

What is the name of the theory that says countries produce and export goods that require resources that are abundant and import goods that require resources in short supply?

Factor proportions theory divides a nation’s resources into what two categories?

The four main components of the Porter diamond are: (1) factor conditions, (2) demand conditions, (3) firm strategy, structure, and rivalry, and what else?