International Trade Theories and Patterns Quiz
Test your knowledge on international trade theories and patterns. Learn about absolute advantage, comparative advantage, factor endowment, and more!
#1
Which trade theory suggests that countries should specialize in producing goods where they have a comparative advantage?
Absolute Advantage Theory
Heckscher-Ohlin Theory
Comparative Advantage Theory
Factor Proportions Theory
#2
Who proposed the theory of absolute advantage?
Adam Smith
David Ricardo
John Maynard Keynes
Milton Friedman
#3
Which theory suggests that international trade occurs due to differences in labor productivity?
Absolute Advantage Theory
Heckscher-Ohlin Theory
Comparative Advantage Theory
Factor Proportions Theory
#4
The Linder hypothesis suggests that international trade occurs predominantly between countries with:
Similar income levels
Different income levels
Similar cultural backgrounds
Different cultural backgrounds
#5
Which trade theory argues that a nation's wealth is determined by the amount of gold and silver it possesses?
Absolute Advantage Theory
Mercantilism
Heckscher-Ohlin Theory
Comparative Advantage Theory
#6
In which trade theory is the concept of 'factor endowment' central?
Mercantilism
Factor Proportions Theory
New Trade Theory
Absolute Advantage Theory
#7
Which trade theory suggests that trade is influenced by the availability and cost of factors of production?
New Trade Theory
Heckscher-Ohlin Theory
Absolute Advantage Theory
Comparative Advantage Theory
#8
Which trade theory emphasizes the role of economies of scale and product differentiation in explaining international trade?
New Trade Theory
Factor Proportions Theory
Mercantilism
Absolute Advantage Theory
#9
Who proposed the factor proportions theory?
Adam Smith
David Ricardo
Eli Heckscher and Bertil Ohlin
Paul Krugman
#10
Which trade theory suggests that international trade arises from the differences in factor endowments among countries?
Absolute Advantage Theory
Mercantilism
Heckscher-Ohlin Theory
Comparative Advantage Theory
#11
Which theory suggests that trade is driven by the differences in technology levels between nations?
Comparative Advantage Theory
Factor Proportions Theory
New Trade Theory
Mercantilism
#12
Who developed the concept of 'national competitive advantage'?
Adam Smith
David Ricardo
Michael Porter
Eli Heckscher and Bertil Ohlin
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