A. A would export X to B
B. B would import Y from A
C. Neither country would want to trade
D. None of the above
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Related Mcqs:
- 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...
- If countries were to trade along the lines of comparative advantage ?
- A. A would export X to B B. A would export Y to B C. Neither country would want to trade D. None of the above...
- Following World War II the United States and other countries sought to liberalize trade among each other the first major postwar step toward trade liberalization was the ?
- A. General Agreement on Tariffs and Trade B. World Trade Organization C. Smoot Hawley Organization D. McKinley Agreement on Trade policy...
- 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...
- Trade creation will more likely outweigh trade diversion for Country X that forms a customs union if the level of tariffs in Country X prior to the customs union is ________ and the total number of countries forming the customs union is _________?
- A. relatively high; relatively large B. relatively high; relatively small C. relatively low ; relatively large D. relatively low ; relatively small...
- According to the Principle of absolute advantage Japan should ?
- A. Export steel B. Export DVDs C. Exports steel and DVDs D. There is no basis for gainful specialization and trade...
- Absolute advantage is determined by ?
- A. actual differences in labor production between countries B. relative differences in labor productivity between countries C. Both (a) and (b) D. Neither (a) nor (b)...
- Country A has an absolute advantage in__________?
- A. Product X B. Product Y C. Neither X nor Y D. Both X and Y...
- Country B has an absolute advantage in ?
- A. Product X B. Product Y C. Neither X nor Y D. Both X and Y...
- Country A has an absolute advantage in ?
- A. Beer B. Wine C. Both products D. neither products...
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