International trade theory refers to
The microeconomic aspects of international trade
The macroeconomic aspects of International trade
Open economy macroeconomic or International finance
All of the above
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
Economic theory :
Seeks to explain economic events
Seeks to predict economic events
Abstracts from the many details that surrounds an economic event
What proportion of International trade is based on absolute advantage ?
All
Most
Some
None
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
If in a two nation ( A and B ) , two commodity ( X and Y ) world , it is established that nation A has a comparative advantage in commodity X, then nation B must have:
An absolute advantage in commodity Y
An absolute disadvantage in commodity Y
A comparative disadvantage in commodity Y.
Comparative advantage in commodity Y
A rough measure of the degree of economic interdependence of a nation is given by.
The size of the nations population
The percentage of to population to its GDP
The percentage of a nation's import and exports to its GDP
According to Adam smith , International trade was based on:
Absolute advantage
Comparative advantage
Both absolute and comparative advantage
Nether absolute nor comparative advantage
Economic Interdependence is grates for :
A small nations
Large nations
Developed nations
Developing nations
A policy of developing local industries that can compete with imports is referred to as
Export promotion
Unbalanced growth
Industrial promotion
Import substitution
