International Economy Week 2

What is the primary cause of the international labor division?

• Differences in endowment of economic resources

• Equal distribution of natural resources across countries

• Similar production capabilities among countries

• Standardization of global production methods

Which resource is comparatively scarce in the European Union (EU)?

• Knowledge

• Capital

• Entrepreneurship

• Natural resources

Which economist initially proposed the concept of international labor division?

• Michael Porter

• Eli Heckscher

• Adam Smith

• Bertil Ohlin

What does the theory of national competitive advantage by Michael Porter primarily focus on?

• The endowment of countries with natural resources

• The determinants of competitive industries within a country

• The global movement of natural resources

• The equal distribution of labor

Which of the following is NOT a determinant in Porter's Diamond Model?

• Firm strategy and rivalry

• Global population growth

• Related and supporting industries

• Demand conditions

In which period was the international labor division mainly based on differences in natural resources?

• During the Industrial Revolution

• Before the Industrial Revolution

• After World War II

• In the 21st century

According to the concept of the international movement of economic resources, which of these resources is the least mobile internationally?

• Knowledge

• Capital

• Labor

• Technology

Which event is considered a "random event" in Porter's Diamond Model?

• Government fiscal policy

• Corporate strategy changes

• Technological breakthroughs

• Domestic market demand changes

What was one of the key factors in the mass production of fighter jets in Russia in the 1930s?

• Importing foreign technology

• A developed knowledge base in aerodynamics

• Private investments in the aviation industry

• Lack of competition

According to Porter's theory, what is the role of the government in national competitive advantage?

• To dictate market prices

• To control all domestic industries

• To influence the determinants of the Diamond Model

• To isolate national industries from global competition