Question :
111.The new trade theory at variance with the _____ theory, : 1299294
111.The new trade theory is at variance with the _____ theory, which suggests that a country will predominate in the export of a product when it is particularly well endowed with those factors used intensively in its manufacture.
A. Heckscher-Ohlin
B. product life-cycle
C. comparative advantage
D. absolute advantage
E. national competitive advantage
112.Which of the following is an empirically supported prediction of the new trade theory?
A. Trade increases the specialization of production within an industry.
B. Nations benefit from trade only when they differ in factor endowments.
C. Government intervention and strategic trade policies are more likely to harm international trade than free trade.
D. The locus of global production initially switches from the United States to other advanced nations.
E. Comparative advantage arises from differences in productivity and factor endowments.
113.Which of the following theories generates for government intervention and strategic trade policy?
A. Theory of absolute advantage
B. Theory of comparative advantage
C. Heckscher-Ohlin theory
D. New trade theory
E. Poduct life-cycle theory
114.The new trade theory diverts from its advocacy of free trade by:
A. suggesting that price of a new product increases along with the increase in the popularity of the product.
B. suggesting that nations benefit from trade even in absence of resource endowments and technology.
C. suggesting an economic rationale for a proactive trade policy.
D. stressing the role of luck, entrepreneurship, and innovation in giving a firm first-mover advantages.
E. suggesting that market expansion leads to better realization of economies of scale.
115.Which of the following was being determined by the research that led to the development of the theory of national competitive advantage?
A. How government intervention and trade policies affect international trade
B. How economies of scale impact the variety of goods and scale of production
C. How technological advances impact first mover advantages
D. Why some countries succeed and others fail in international competition
E. How trade increases the variety of goods and decrease the cost of these goods
116.Which of the following formed the crux of Porter’s 1990 study of national competitive advantage?
A. Identifying the various stages of the lifecycle of a product
B. Determining how a country achieves international success in a particular industry
C. Determining how trade barriers affect the prices of products in the international market
D. Determining how existing trade theories predict international trade patterns
E. Determining the relationship between factor endowments and economies of scale
117.Which of the following is a component of Porter’s diamond?
A. First-mover advantages
B. Comparative advantages
C. Constant returns to specialization
D. Demand conditions
E. Economies of scale
118.According to Porter’s diamond, what are factor endowments?
A. The position of a nation regarding the components of production necessary to compete in a given industry
B. The presence or absence of related industries that are internationally competitive
C. The conditions governing how companies are created, organized, and managed and the nature of domestic rivalry
D. The nature of home demand for the industry’s product or service
E. The economic and strategic advantages that accrue to early entrants into an industry
119.Which of the following is true of the four attributes that make Porter’s diamond?
A. Absence of any single attribute does not impact effectiveness of the diamond.
B. The effect of one attribute is contingent on the state of others.
C. The diamond is not a mutually reinforcing system.
D. Chance events, such as major innovations, do not affect Porter’s diamond.
E. Only in the absence of one of the four attributes, government policies can influence Porter’s diamond.
120.Which of the following is one of the four factors included in Porter’s diamond?
A. Purchasing power parity
B. Gross national income
C. Economies of scale
D. Firm strategy, structure, and rivalry
E. Gross domestic product
