Global Business: Ch5-10 terms-nm
Factor proportions theory was developed by ________.
Heckscher and Ohlin
A majority of the total world merchandise trade occurs among ________.
High income economies
The Leontief paradox describes evidence ________.
In support of the predictions of the mercantilist theory.
The theory of absolute advantage measures a nation's wealth by determining the ________.
Living standards of its people.
The smallest portion of the total world trade comprises trade between ________.
Low income and middle income nations.
Most of the world merchandise trade is composed of trade in ________.
Manufactured goods
Adam Smith believed that ________.
Market forces should determine trade flows.
The danger of trade dependency is that ________.
Political turmoils in a country might affect all dependent countries.
National competitive advantage theory states that a nation's competitiveness in an industry depends on _________.
The capacity of the industry to innovate and upgrade.
One of the major pillars upon which the practice of mercantilism rested was ________.
Trade surpluses
