According to the factor price equalization theorem, the ________ factor should oppose free. trade policies in any given country?
By adjusting the model of comparative advantage to include transportation costs along with production costs we would expect ?
Advocates of industrial policy maintain that government should ?
According to the Heckscher-Ohlin model ?
In his empirical test of comparative advantage Wassily Leontief found that ?
The Heckshcer-Ohl assumes that are indentical between countries?
One of the predictions of the Heckscher-Ohlin model is that ?
If tastes are identical between countries, then comparative advantage is determined by ?
Industrial policies intended to foster comparative advantage for domestic industries could result in the implementation of ?
The product cycle theory of trade is essentially a ?
The Heckscher-Ohl in model rules out the classical model’s basis for trade by assuming that _________ is (are) identical between countries?
Declining costs per unit of output results from international trade especially if ?
Dynamic comparative advantage theory ?
That the division of labor is limited by the size of the market best applies to which explanation of trade ?
_____ 1954 study of U.S trade patterns showed that U.S exports were labor-intensive compared with U.S imports, even though the United States was widely regarded as a relatively capital-abundant nation ?
For the United States empirical studies indicate that over the past two hundred years the cost of international transportation relative to the value of U.S imports has ?
The trade model of the Swedish economies Heckscher and Ohlin maintains that ?
Which trade theory contends that a country that initially develops and exports a new product may eventually become an importer of it and may no longer manufacture the product ?
The factor endowment model of international trade was developed by ?
Interindustry trade can be explained by all of the following except ?
A product will be traded only if the pre-trade price difference between the two countries ?
Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?
The factor endowment theory was pioneered by ?
Wassily Leontief’s results can be interpreted as ?
Leontief’s result were considered paradoxical because the United Stated was believed to be ?
In his empirical tests, Wassily Leontief used an input-output table to ?
Wassily Leontief used an input output table in order to test the ?
The Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production in relatively intensive in the with which the country is relatively abundant ?
By reducing the volume of trade transportation costs tend to ?
The analyzes the income distribution effects of trade in the short run when resources are immobile among industries ?
The comparative advantage model of Ricardo was based on ?
According to the Heckscher-Ohlin model the source of comparative advantage is a country’s ?
Difference in environmental standards or other government regulations among nations ?
Should international transportation costs decrease the effect on international trade would include a (an) ?
According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?
According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will ?
The theory of overlapping demand predicts that trade in manufactured goods is unimportant for countries with very different ?
Boeing aircraft company was able to over its production costs of the first – jumbo jetll in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates ?
The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries ?

Intra-industry trade theory ?

A. Explains why the United States might export autos and import clothing
B. Explains why the United States might export and import differentiated versions of the same product such as different types of autos
C. Assumes that transport costs are very low or do not exist
D. ignores seasonal considerations for agricultural goods

Correct Answer: Explains why the United States might export and import differentiated versions of the same product such as different types of autos ✔

Last Updated: June 18, 2019