The commodity in which the nation has the smallest absolute disadvantage the commodity of its:
Absolute disadvantage
Absolute advantage
Comparative disadvantage
Comparative advantage
International economics deals with
The flow of goods , services and payments among nations
Policies directed at regulating the flow of goods , services and payments
The effects of polices on the welfare of the nation
All of the above
What proportion of International trade is based on absolute advantage ?
All
Most
Some
Constant
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
Economic Interdependence is greater 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
International trade theory refers to
The microeconomic aspects of international trade
The macroeconomic aspects of International trade
Open economy macroeconomic or International finance
David Ricardo's theory in favour of free trade uses the idea of
Multilateral advantage
Mutual advantage
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
Which of the following is not an assumption generally made in the study of International economics ?
Two nations
Two commodities
Perfect International al mobility of factors
Two factors of products