AGB 302 Quiz 3 | Questions with 100% Correct Answers | Updated & Verified, Exams of Community Corrections

Download AGB 302 Quiz 3 | Questions with 100% Correct Answers | Updated & Verified and more Exams Community Corrections in PDF only on Docsity!

AGB 302 Quiz 3 | Questions with 100% Correct Answers | Updated

& Verified

1. refers to a situation where a government does not attempt to influence through

quotas or duties what its citizens can buy from another country - Correct

answer free trade

2. argued that countries should specialize in the production of goods for which they

have an absolute advantage. - Correct answer Adam Smith

3. The theory of comparative advantage suggests that trade is a game in which all

countries that participate realize economic gains - Correct answer

positive-sum

4. The _________ argues that a large proportion of the world's new products had

been developed by U.S. firms. - Correct answer product life-cycle theory

5. are unit cost reductions associated with a large scale of output - Correct

answer Economies of scale

6. refers to a situation where a government does not attempt to influence through

quotas duties what its citizens can buy from another country - Correct

answer Free trade

7. David Ricardo's theory of comparative advantage explains global trade in terms

of the: - Correct answer International differences in labor productivity

8. the following is a theory that can be used to justify limited government intervention to support the development of certain export-oriented industries? -

Correct answer New trade theory

9. A country has an absolute advantage in the production of a product when it: -

Correct answer is more efficient than any other country

10. According to Ricardo's theory of comparative advantage, a country should

produce goods - Correct answer that it produces most efficiently.

11. are levied as a proportion of the value of the imported good - Correct

answer Specific tariffs

12. A(n) ______________ helps domestic producers to compete against foreign

imports - Correct answer import quota

13. A company that sells its product in a foreign market below the cost of production

may be accused of - Correct answer dumping

14. According to the infant industry argument, many developing countries have a potential _______________ in manufacturing, but new manufacturing industries cannot initially compete with established industries in developed countries -

Correct answer comparative advantage

15. Strategic trade policy suggests that a government should use __________ to

support promising firms that are active in newly emerging industries - Correct

answer subsidies

16. Krugman has suggested that trade policy designed to retaliate against another

country's trade policy would - Correct answer hurt the citizens of both

countries.

17. A key issue in the "millennium round" of the WTO was to: - Correct answer

further reduce barriers to cross-border trade and investment.

18. WTO rules allow countries to __________ foreign goods that are being sold cheaper than at home, or below their cost of production, even when domestic

producers can show that they are being harmed. - Correct answer place

countervailing duties on

19. Inadequate protections for intellectual property: - Correct answer reduce

the incentive for innovation.

20. Many firms, of all national origins increasingly depend on ____________ for their

competitive advantage. - Correct answer globally dispersed production

systems