How do recent current account deficits compare to GNP and to past ratios?
What will be an ideal response?
Question 2 - The primary interest of firms engaging in offshoring is to find lower wages and to decrease production costs.
Indicate whether the statement is true or false
Question 3 - The way in which a country grows affects the pattern of trade of a country. True or false. Discuss.
What will be an ideal response?
Question 4 - Which of the following is a critical element of the Heckscher-Ohlin model?
A) That different goods display different factor intensities in their production.
B) That some countries have no comparative advantage in anything.
C) That trade may not be beneficial.
D) All of the above.
Question 5 - Which of the following could explain why the terms of trade of developing countries might deteriorate over time?
A) Developing country exports consist mainly of manufactured goods.
B) Developing country exports consist mainly of primary products.
C) Commodity export prices are determined in highly competitive markets.
D) Commodity export prices are solely determined by developing countries.
E) Developing country exports are too diverse.
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