Which option completely states the number of countries, commodities and factors of production in the basic Ricardian model of comparative advantage?
Two Country, Two Commodity and One Factor theory
The basic Ricardian model has two countries, two commodities and one production factor, labour. Trade is driven by differences in relative labour productivity and therefore comparative production costs.
Important Questions from Theories of international trade - Teaching
The theory suggesting that the patterns of international trade are determined by factor endowment rather than productivity was propounded by which one of the following?
Match the items of List - II with the items of List - I and select the code of correct matching. The items relate to International Trade Theories.
List – I
List – II
(a)
Comparative Cost Theory
(i)
Adam Smith
(b)
Opportunity Cost Theory
(ii)
Gottfried Haberler.
(c)
Factor Endowment Theory
(iii)
David Ricardo
(d)
Absolute Cost Theory
(iv)
Eli Heckscher and Bertil Ohlin.
Match List I with List II
List I
List II
A.
Supply side of International Trade I.
David Ricardo B.
Demand side of International Trade II.
Bastable and Alfred Marshall C.
Opportunity cost of International Trade III.
G. Haberler D.
Real cost theory of International Trade IV.
Alfred Marshall and Edgeworth Choose the correct answer from the options given below:
Assertion (A): International standardization can reduce manufacturing and marketing costs through shared product designs and campaigns.
Reason (R): Some foreign markets require product adaptations to meet local preferences or legal requirements.
Choose the correct answer.Match List I with List II
Choose the correct option from the given below:List I List II Theories of International Tradee Propounder (s) (a) Theory of Absolute Advantage (i) Raymond Vernon (b) Factor Proportion Theory (ii) Steffan Linder (c) Country Similarity Theory (iii) Heckscher Ohlin (d) Product Life Cycle Theory (iv) Adam Smith
