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 ?

Related Mcqs:

According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?

A. similar endowments of natural resources B. similar levels of technology C. similar per-capita incomes D. similar wage levels...

Should international transportation costs decrease the effect on international trade would include a (an) ?

A. increase in the volume of trade B. Smaller gain from trade C. Decline in the income of home producers D. Decrease in the level of specialization in production...

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 ?

XA. 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...

If tastes are identical between countries, then comparative advantage is determined by ?

A. supply condition only B. demand conditions only C. supply and demand conditions D. can’t tell without more information...

One of the predictions of the Heckscher-Ohlin model is that ?

A. countries with different factor endowments but similar technologies and preferences will have a strong basis for trade with each other B. countries with tend to specialize but not completely in their comparative advantage good C. reciprocal demand leads to an equilibrium terms of trade by inducing change in both demand and supply D. All … One of the predictions of the Heckscher-Ohlin model is that ?Read More...