1) In general, a capital-abundant country (such as the United States) tends to s
ID: 2755156 • Letter: 1
Question
1) In general, a capital-abundant country (such as the United States) tends to specialize in capital-intensive industry and export capital-intensive products, and import labor-intensive products. This statement is an illustration of the: Select one: A. commodity terms of trade theory B. supply and demand theory C. diminishing returns theory D. factor-sourcing theory E. factor endowment theory
2) The last step of the possible integration forms is the: Select one: A. cartel. B. common market. C. monetary union. D. political union E. Customs union.
3) The three main political ideologies are: Select one: A. Communism, capitalism and globalism B. Communism, capitalism and radicalism C. Communism, capitalism and modernism D. Communism, capitalism and Confucianism E. Communism, capitalism and socialism
4) In the __________________ stage of the international product cycle theory, U.S. companies typically increase exports to Europe and Japan as those foreign markets expand. Select one: A. introduction B. saturation C. growth D. Maturity E. decline
5) Trading in foreign currencies has an effect on world trade. For example, a rise in the value of the local currency due to daily flows vis-à-vis other currencies makes exports: Select one: A. less expensive. B. more expensive. C. Come under government control. D. Parallel with imports. E. Be banned.
Explanation / Answer
1. A capital abundant country (such as US) tends to specialize in capital intensive industry and exports capital intensive products, and import labour intensive products. This statement is an illustration of B). Demand and supply theory.
2. The last step of common integration form is D). Political union.
3. The three main political ideologies are E). Communism, capitalism and socialism.
4. In the B) Saturation stage of international product cycle theory, US companies typically increses export to Europe and japan as those foreign markets expands.
5. Trading in foreign currencies has an effect on world trade. For example, a rise in the value of the local currency due to daily flows vis-à-vis other currencies makes exports A). Less expensive.
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