Part 2: Multiple Choice Questions on International Trade Theory
__________ try to explain why trade takes place between countries.
A. International Trade Firms
B. International Trade Theories
C. International Trade Blocks
D. IBRD
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B. International Trade Theories
Trade theories are classified into ______ trade theories and modern trade theories.
A. Regional
B. Classical
C. Local
D. Ancient
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B. Classical
_____ is the oldest trade theory.
A. Comparative Cost Advantage Theory
B. Hecksher Ohlin Theory
C. Product Life Cycle Theory
D. Theory of mercantilism
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D. Theory of mercantilism
_______ argues that countries enter into trade to earn gold and silver,
A. Theory of mercantilism
B. Theory of absolute advantage
C. Product Life Cycle Theory
D. Hecksher Ohlin Theory
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A. Theory of mercantilism
______ suggests that each country should specialize in producing only those goods which it can produce efficiently.
A. Theory of mercantilism
B. Theory of absolute advantage
C. Product Life Cycle Theory
D. Hecksher Ohlin Theory
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B. Theory of absolute advantage
Theory of absolute advantage is propagated by ______.
A. Philip Kotler
B. Adam Smith
C. Peter Drucker
D. David Ricardo
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B. Adam Smith
Theory of comparative advantage was given by ______
A. Philip Kotler
B. Adam Smith
C. Peter Drucker
D. David Ricardo
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D. David Ricardo
_________ stresses on the ‘relative cost difference’ rather than ‘absolute cost difference’ between the goods as the basis for carrying out trade.
A. Theory of absolute advantage
B. Theory of comparative advantage
C. Hecksher Ohlin Theory
D. Theory of mercantilism
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B. Theory of comparative advantage
Factor endowments theory of international trade is also known as _______
A. Theory of absolute advantage
B. Theory of comparative advantage
C. Hecksher Ohlin Theory
D. Theory of mercantilism
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C. Hecksher Ohlin Theory
________ advocates that a country should focus and specialize in the production of goods that it can produce relatively at a lower cost than other countries.
A. Theory of absolute advantage
B. Theory of comparative advantage
C. Hecksher Ohlin Theory
D. Theory of mercantilism
View Answer
B. Theory of comparative advantage
______ explains that the countries acquire comparative advantages due to differences in the national factor endowments like land, labour and capital.
A. Theory of absolute advantage
B. Theory of comparative advantage
C. Hecksher Ohlin Theory
D. Theory of mercantilism
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C. Hecksher Ohlin Theory
International product life cycle theory was given by ______.
A. Raymond Vernon
B. David Ricardo
C. Michael Porter
D. Adam Smith
View Answer
A. Raymond Vernon
National competitive advantage also called as_____.
A. Gold Model
B. Silver Model
C. Diamond Model
D. Platinum Model
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C. Diamond Model
According to ‘New Trade Theory’ a firm acquires export competitiveness due to _______.
A. Specialization and economies of scale
B. Being the first mover in the market
C. Government support
D. All of the above
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D. All of the above
National competitive advantage theory of international trade was given by_____
A. Raymond Vernon
B. David Ricardo
C. Michael Porter
D. Adam Smith
View Answer
A. Raymond Vernon
This is all about MCQ on International Trade, International Trade Theories and Foreign Trade.