#1
Which theory suggests that a country should specialize in the production of goods and services it can produce most efficiently?
Absolute advantage theory
Comparative advantage theory
Heckscher-Ohlin theory
Mercantilism theory
#2
Who proposed the theory of absolute advantage?
Adam Smith
David Ricardo
Paul Krugman
John Maynard Keynes
#3
Which of the following is NOT a trade barrier?
Tariff
Quota
Subsidy
Comparative advantage
#4
What is the main purpose of the World Trade Organization (WTO)?
To promote fair competition
To eliminate tariffs
To regulate currency exchange rates
To provide financial aid to developing countries
#5
What is the main objective of trade liberalization?
To restrict international trade
To increase government intervention in trade
To promote free trade
To impose trade barriers
#6
Which of the following is NOT a principle of the mercantilist theory?
Maintaining a trade surplus
Promoting free trade
Accumulating gold and silver
Government intervention in trade
#7
Which theory suggests that differences in factor endowments among countries lead to differences in comparative costs and hence determine patterns of trade?
Absolute advantage theory
Comparative advantage theory
Heckscher-Ohlin theory
Mercantilism theory
#8
Which trade theory emphasizes the role of economies of scale in international trade?
Absolute advantage theory
Comparative advantage theory
New trade theory
Factor proportions theory
#9
What is dumping in international trade?
Selling goods in foreign markets at a price lower than their production cost
Selling goods in domestic markets at a price lower than their production cost
Exporting goods without paying tariffs
Importing goods without paying tariffs
#10
Which organization is responsible for facilitating negotiations and implementing trade agreements among member countries?
International Monetary Fund (IMF)
World Bank
World Trade Organization (WTO)
United Nations (UN)
#11
According to the product life cycle theory, in which stage of a product's life cycle is a country likely to become an importer of the product?
Introduction stage
Growth stage
Maturity stage
Decline stage
#12
Which trade theory suggests that countries should specialize in the production and export of the goods that use their abundant factors of production?
Absolute advantage theory
Comparative advantage theory
Heckscher-Ohlin theory
New trade theory
#13
According to the Porter's Diamond Model, which factor refers to the presence of strong domestic competition that drives innovation and efficiency?
Factor conditions
Demand conditions
Related and supporting industries
Firm strategy, structure, and rivalry
#14
What is the primary goal of export-oriented industrialization (EOI)?
To reduce exports
To increase domestic consumption
To boost exports by promoting industries with a competitive advantage in international markets
To restrict imports