Economics suggest that trades main advantage is allowing the world to achieve;
More self - sufficiency
Greater equality between countries
Economic growth for all countries
Specialization and the resulting economics of scale
Which of the following is not the subject matter of International finance?
Foreign exchange markets
The balance of payments
The basis and the gain from trade
Polices to adjust balance of payments duse equilibria
International economics deals with
The flow of goods , services and payments among nations
directed at regulating the flow of goods , services and payments
The effects of polices on the welfare of the nation
All of the above
Over time , the economics interdependence of nations has
Grown
Diminished
Remained unchanged
Cannot say
David Ricardo's theory in favour of free trade uses the idea of
Multilateral advantage
Mutual advantage
Absolute advantage
Comparative advantage
The gravity model of International trade predicts that trade between two nations is larger
The larger the two nations
The closer the nations
The more open are the two nations
What proportion of International trade is based on absolute advantage ?
All
Most
Some
None
International Trade is most important to the standard of living of :
The united states
Switzerland
Germany
England
According to Adam smith , International trade was based on:
Both absolute and comparative advantage
Nether absolute nor comparative advantage
Economic theory :
Seeks to explain economic events
Seeks to predict economic events
Abstracts from the many details that surrounds an economic event
