Which economic theory best explains current international trade and why? a) Mercantilism b) Absolute Advantage c)...
Which economic theory best explains current international trade and why?
a) Mercantilism
b) Absolute Advantage
c) Comparative advantage
d) Factors Proportions Theory
e) International Product Life Cycle
f) Porter's Theory of National Competitive
Homework Answers
Option F.
- Porter's Theory of National competitive advantage best explains the current international trade.
- This theory was proposed by Micheal Porter to show a nation's competitive advantage.
- According to him, a nation can achieve competitive advantage if they hold the capability to grow and upgrade themselves.
- He argued that certain factors if available in a nation can help them in achieving competitive advantage. They are :-
- Local market demand conditions.
- Local market factor conditions like resources and capabilities.
- Local firm characteristics.
- Local suppliers and complementary firms.
Add Answer to:
Which economic theory best explains current international trade
and why?
a) Mercantilism
b) Absolute Advantage
c)...
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Which of the following is NOT one of the possible benefits for a country that participates...
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Using the framework in Table 6.1, explain which of the theories relate to Taiwan’s trade policy...
Using the framework in Table
6.1, explain which of the theories relate to Taiwan’s trade policy
during each of the eras described in the case.
A check mark indicates that a theory of trade concerns itself
with the question asked at the head of the column; if there’s a
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Which of the following is NOT one of the possible benefits for a country that participates in international trading? OA May bring in needed capital OB. Causes hyper-inflation OC. Creates jobs and raises wages OD. May bring in technology and skills Adam Smith believed that OA market forces should determine trade flows OB countries should produce most goods themselves and trade as little as possible O international trade should be restricted by tariffs and quotas OD governments should determine trade...
Using the framework in Table
6.1, explain which of the theories relate to Taiwan’s trade policy
during each of the eras described in the case.
A check mark indicates that a theory of trade concerns itself
with the question asked at the head of the column; if there’s a
dash, it doesn’t. In the last four columns, you can see how each
theory responds to the specific question; again, a dash indicates
that the theory does not address the question....
Regional Economic Integration Agreements Consistent with the predictions of international trade theory and particularly with the theory of comparative advantage (see Chapter 6), agreements designed to promote free trade within regions are believed to produce gains from trade for all member countries. These agreements define regional economic integration. Regional economic integration (REI) refers to agreements among countries in a geographic region to reduce, and ultimately remove, tariff and nontariff barriers to the free flow of goods, services, and factors of production among...
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