What is the Heckscher-Ohlin theorem? Using the case studies in the chapter on U.S. trade with China describe the theory and the resulting trade patterns that would support it.
What will be an ideal response?
Question 2 - Restaurant meals are an example of a ________ good and clothing is an example of a ________ good. The pattern of interregional trade is determined primarily by ________.
A) nontraded; traded; external economies.
B) traded; nontraded; internal economies
C) nondurable; durable; natural resource
D) durable; nondurable; natural resources
E) consumer; style; population
Question 3 - When comparing the composition of world trade in the early 20th century to the early 21st century, we find major compositional changes. These include a relative decline in trade in agricultural and primary-products (including raw materials).
How would you explain this in terms of broad historical developments during this period?
Question 4 - If an economy experiences an increase in its capital stock, everything else constant, then its production possibilities frontier (PPF) will
A) expand outward but keep its original shape.
B) expand outward largely in the direction of the labor intensive good.
C) expand outward largely in the direction of the capital intensive good.
D) not expand until the labor force grows.
Question 5 - Refer to the figure above. If this country is labor abundant, then according to the HO theory good X should be ________ intensive.
A) capital
B) labor
C) both capital and labor
D) Can't tell without more information
Question 6 - In most of the financial crises of the last decade, there were large and sudden financial outflows as both home and foreign investors tried to avoid the expected crises.
Indicate whether the statement is true or false
Question 7 - Nations get significant advantages if they have a single, valuable, natural resource, with little downside risk.
Indicate whether the statement is true or false
Question 8 - Which of the following does NOT explain the extent of trade between Ireland and the U.S.?
A) historical ties
B) cultural Linguistic ties
C) Gravity Model
D) multinational corporations
E) large numbers of Irish-Americans
Question 9 - If the expansion of a country's exports leads to growth in non-export industries this is called a(n)
A) secondary effect.
B) linkage effect.
C) elementary effect.
D) None of the above.
Quick Reply
