Question : 101.According to the new trade theory, trade, through its impact : 1299293

 

101.According to the new trade theory, trade, through its impact on economies of scale, is most likely to: 

A. reduce the volume of the goods produced.

B. decrease the variety of goods available to consumers.

C. decrease the average costs of goods.

D. inhibit first-mover advantages in all industries.

E. only benefit nations that differ in resource endowments or technology.

102.Which of the following is true of a world without trade that has industries where economies of scale are important? 

A. The variety of goods that a country can produce and the scale of production are limited by the size of the market.

B. Each nation will specialize in producing a narrower range of products than it would in the presence of trade.

C. Each nation can simultaneously increase the variety of goods available to its consumers and lower the costs of those goods.

D. The absence of trade is mutually beneficial because it allows for the specialization of production.

E. The first movers in an industry may get a lock on the world market that discourages subsequent entry.

103.Which of the following is a result of certain products having small national markets, in the absence of trade? 

A. The variety of products available to consumers increases.

B. Limited demand for such products leads to non realization of economies of scale.

C. Each nation will specialize in producing a narrower range of products than it would in the presence of trade.

D. At low volumes of production, unit costs and prices would be lowered.

E. The first movers in an industry may get a lock on the world market that discourages subsequent entry.

104.According to the new trade theory, which of the following is most likely to be a result of market expansion due to trade? 

A. A wide variety of products is produced at greater unit costs than in the absence of trade.

B. As the variety of products increases, demand for individual products decreases, leading to non-realization of economies of scale.

C. Each nation may specialize in producing a narrower range of products, importing goods that it does not make.

D. The ability to capture first-mover advantages is restricted in a world that allows trade.

E. When countries do not differ in their resource endowments or technology, trade does not offer mutual benefits.

105.According to the new trade theory, how does trade offer an opportunity for mutual gain when countries do not differ in their resource endowments or technology? 

A. Trade results in a contraction of the size of the markets of individual firms.

B. Trade allows for production of products at higher prices.

C. Trade increases the variety of goods available to consumers and lowers the costs of those goods.

D. Trade allows countries to attain self-sufficiency in the production of all goods.

E. Trade guarantees first-mover advantages to all the countries that engage in trade.

106.According to the new trade theory: 

A. the ability to capture first-mover advantages is restricted in a world that allows trade.

B. differences in labor productivity between nations underlie the notion of comparative advantage.

C. a country may predominate in the export of a good because it has firms that were among the first to produce that good.

D. to ensure economic progress, countries should implement several trade barriers.

E. different goods use resources in different proportions and this leads to constant returns to specialization.

107.The economic and strategic advantages that accrue to early entrants in an industry are called: 

A. first-mover advantages.

B. comparative advantages.

C. absolute advantages.

D. economies of scale.

E. factor endowments.

108.Which of the following advantages is most likely to be enjoyed by a company as a part of the first-mover advantages? 

A. Increasing returns to specialization

B. A positive-sum game due to lack of competition

C. The ability to capture scale economies ahead of later entrants

D. Absolute advantage and higher efficiency

E. The ability to specialize in the production of a particular product

109.One of the suggestions of the new trade theory is that: 

A. differences in technology leads to differences in productivity, which in turn, drives international trade patterns.

B. nations may benefit from trade irrespective of resource endowments or technology.

C. the demand for most new products tends to be based on nonprice factors.

D. globally dispersed production reduces the production costs of mature products.

E. comparative advantage does not arrive from a difference in factor endowments but from a difference in productivity.

110.Which of the following creates a barrier to subsequent entries in an industry dominated by first movers? 

A. The laissez-faire stance toward trade adopted by first movers

B. Implementation of policies to maximize imports and minimize exports

C. Specializing in the production of goods for which firms have an comparative advantage

D. The ability of first movers to benefit from increasing returns

E. Decrease in the variety of goods available to consumers and increase in the cost of existing goods

 

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