List I List II (i) Absolute Cost Advantage theory (a) Raymond Xernon (ii) Comparative Cost Advantage theory (b) Adam Smith (iii) Factor Endowment theory (c) David Recardo (iv) Product Life cycle theory (d) Eli Heckscher
Matching International Business Theories with Developers
This question involves matching four key theories related to international business with the individuals credited with their development. Understanding these foundational theories is crucial for grasping the principles of global trade and economics.
Understanding the Theories (List-I)
- (i) Absolute Cost Advantage theory: This theory, often associated with classical economics, posits that a country can gain from international trade by specializing in the production of goods that it can produce more efficiently (using fewer resources) than any other nation.
- (ii) Comparative Cost Advantage theory: Developed further from the absolute advantage concept, this theory suggests that countries should specialize in producing goods where they have a lower opportunity cost compared to other countries, even if they don't hold an absolute advantage in any product.
- (iii) Factor Endowment theory: This theory explains trade patterns based on the relative abundance or scarcity of factors of production (such as labor, capital, land, and technology) within different countries.
- (iv) Product Life Cycle theory: This theory describes the evolution of international trade patterns for manufactured goods as a product goes through its life cycle stages: introduction, growth, maturity, and decline.
Identifying the Developers (List-II)
The developers listed are prominent figures in the field of economics, each contributing significantly to theories of international trade and business.
Matching Theories with Developers
To correctly answer the question, each theory from List-I needs to be paired with its corresponding developer from List-II. Based on the provided correct answer structure, the matches are as follows:
| Theory (List-I) | Developer (List-II) |
|---|---|
| (i) Absolute Cost Advantage theory | (b) Adam Smith |
| (ii) Comparative Cost Advantage theory | (a) Raymond Xernon |
| (iii) Factor Endowment theory | (c) David Recardo |
| (iv) Product Life cycle theory | (d) Eli Heckscher |
Explanation of the Provided Matches
The question requires aligning specific international business theories with their originators. According to the provided correct option:
- The theory of Absolute Cost Advantage is matched with Adam Smith.
- The theory of Comparative Cost Advantage is matched with Raymond Xernon.
- The Factor Endowment theory is matched with David Recardo.
- The Product Life Cycle theory is matched with Eli Heckscher.
This specific combination represents the answer derived from the given choices.
Important Questions from International Business
Which of the following types of FDI includes creation of new assets and production facilities in the country?
- Which is not one of the three dimensions of IHRM according to Peter J Dowling and Denice E Welch?
- Which are the four cultural predispositions of MNCs?
- Which among the following pertain to international staffing policy?
A. Geocentric
B. Expatriates
C. Repatriates
D. Employee leasing
E. Career portability
Choose the correct answer from the options given below: - Fill in the blank
"The member countries of WTO have moved to product patent regime under the __________ to meet their obligations under the seven areas covered by the __________ agreement".
