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:

1. A company is in the ________ stage of the new product development process when the company develops the product concept into a physical product in order to assure that the product idea can be turned into a workable product ?

   A. product development
   B. commercialization
   C. marketing strategy
   D. business analysis

2. Which approach predicts that is an economy operates a full employment and faces trade deficit currency devaluation will improve the trade balance only if domestic spending is cut thus freeing resources to produce exports ?

   A. the absorption approaches
   B. the Marshall Lerner approach
   C. the monetary approach
   D. the elasticities approach

3. What is called the difference in the value of a nation’s imports over exports or exports over imports ?

   A. Trade deficit
   B. Trade simples
   C. Both a & b
   D. Not a nor b

4. When free trade areas are set up the member countries trade with each other grows faster than their trade with other countries This is due to what economist call ?

   A. trade diversion
   B. trade channeling
   C. trade creation and trade diversion
   D. trade creation

5. 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

6. _____ 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 ?

   A. Paul Samuelson’s
   B. Wolfgang Stolpher’s
   C. Staffan Linder’s
   D. Wassily Leontief’s

7. A critic of “Shock therapy” to transition economies. Vladamir Popov, contends that shock therapists put a heavy emphasis on ?

   A. introducing the reform package at once to ensure that it became too late and costly to reverse the reforms
   B. agricultural reform rather than industrial reforms to overcome food insecurity
   C. the creation of a small-scale private sector ans small independent banks
   D. attempts to gradually remake institutions

8. Takatoshi Ito (1992) contends that parliamentary governments manipulate the timing of _____ while presidential governments manipulate the timing of _____?

   A. monetary policy, fiscal policy
   B. elections; economics policies
   C. economic policies; political policies
   D. tax collection, tax implementation

9. Suppose that the United Kingdom devalues the pound if both exports and imports are written in terms of pounds then the United Kingdom balance of trade during a currency contract period ?

   A. improves
   B. worsens
   C. is unaffected
   D. falls for a while before increasing

10. 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