A product will be traded only if the pre-trade price difference between the two countries ?

Sources of Comparative Advantage 16/02/2021

A. is less than the cost of transporting it between them
B. is greater than the cost of transporting it between them equals the cost of transporting it between them
C. equals the cost of transporting it between them
D. more information in needed to answer this

Related Mcqs:

    Difference in environmental standards or other government regulations among nations ?
    A. have no impact on patterns of international trade B. have tended to make U.S steel companies more competitive internationally C. can affect production costs and thus alter comparative advantages and trade patterns D. have been eliminated by the nations participating in NAFTA...
    According to the Heckscher-Ohlin model the source of comparative advantage is a country’s ?
    A. technology B. advertising C. factor endowments D. both (a) and (c)...
    That the division of labor is limited by the size of the market best applies to which explanation of trade ?
    A. Factor endowment theory B. Product life cycle theory C. Economies of scale theory D. Overlapping demand theory...
    Dynamic comparative advantage theory ?
    A. helps explain why some nations use industrial policy to support potentially competitive new firms B. cannot explain strategic competition between firms such as Boeing and Airbus C. Is another name for Ricardo’s comparative advantage theory? D. None of the above...
    The Heckscher-Ohl in model rules out the classical model’s basis for trade by assuming that _________ is (are) identical between countries?
    A. factor endowments B. factor intensities C. technology D. opportunity costs...

Leave a Reply

Your email address will not be published. Required fields are marked *