Chapter 6 - International Business Theories

The trade theory that premises a country's wealth is measured by its holdings of treasure, usually in gold, is known as _______.

______ holds that there are advantages to trade because different countries can produce different goods more efficiently than others.

Comparative advantage holds that there is a basis for trade when Country A specializes _______.

All countries face the questions of what, how much, and with whom they should export and imports.

Under mercantilism, governments sought to influence trade by limiting imports and subsidizing exports.

The theory of absolute advantage holds that a country will gain from trade even though it can produce all goods more efficiently than other countries.

The factor proportions theory holds that a country will benefit most from trade by importing labor-intensive products and exporting capital-intensive products.

At an early stage of a product's life cycle, the product is apt to be made in a more capital-intensive method than in its later stages.

The factor proportions theory of trade says that a country will have its best trade advantage if it concentrates on _______.

All of the following are conditions of the Porter Diamond except _________.

The term used to describe a country's loss of highly educated productive human resources is known as _______.

The free trade theories of specialization assume that countries have objectives other than economic efficiency.

The top 10 exporting countries are dominated by countries with cheap labor.

At an early stage of a product's life cycle, the product is apt to be made in a more capital-intensive method than in its later stages.

A consumer durable product is more apt to behave according to the product life cycle theory of trade and development than a product with very rapid obsolescence.