The HO theorem states that a country will have comparative advantage in the good whose production is relatively intensive in the ________ with which the country is relatively abundant.
A) tastes
B) technology
C) factor
D) opportunity costs
Question 2 - Subsidiarity requires nations to give up some of their national sovereignty.
Indicate whether the statement is true or false
Question 3 - If two countries begin trade and both produce a product subject to external economies of scale, then the country with the ________ rate of production will ________ production until it controls ________ of the market.
A) higher; increase; 100
B) higher; increase; 50
C) lower; increase; 100
D) lower; increase; 50
E) higher; decrease; 0
Question 4 - Only a few countries have followed outward-oriented development strategies for extensive periods of time. Which of the following countries is not one of those that have followed such a strategy successfully in the last decades.
A) Russia
B) Japan
C) South Korea
D) Singapore
Question 5 - Based on Table 9.3, if values in the table are amended to reflect a net increase in U.S. foreign direct investment of 100, then the new balance for the capital account balance becomes
A) -75.
B) -25.
C) +25.
D) +75.
E) +225.
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