MBA International Business Economics — practice questions
22 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice MBA International Business Economics in the app →Two countries make the same good, and one of them simply makes more of it. That country holds the:A country produces more than its neighbour because it has richer soil and better machines. Those are sources oA country can make a good while giving up less of other goods than its trading partner would. That is a:An economics student asks which advantage actually explains why countries trade. The answer is:A member of the British Parliament set out this idea in a treatise in 1817. He was:That 1817 treatise argued free trade helps every partner, even the relatively inefficient ones, provided each When each country specialises in its comparative advantage and trades, the world's total production is expecteA student of Ricardo sums up what trade really is, in three words. Trade is mutually:Gains from international trade come from following comparative advantage and producing at the lower:Canada gives up less to produce lumber than its partner does. Canada should therefore specialise in:In that same pairing, the partner with the lower opportunity cost in oil should specialise in oil. That partneProducing one ton of copper means giving up two bushels of corn. Those two bushels are the copper's:A phone is designed in one country, built from Korean parts, assembled in China and marketed back home. EconomA country exports cars and imports cars in the same year. Trade inside one industry like this is called:Roughly what share of United States trade and of European trade is trade within the same industry?Similar countries still gain from trading with each other for two reasons. One is economies of scale; the otheInternational trade lets firms reach the low average costs of large-scale output while buyers still get competA body founded to bring trade barriers down brings the world's nations together to negotiate. That body is theThose negotiations run in a distinctive rhythm, one agreement at a time with breaks between. Each cycle is calTraditionally a tariff was reached for less as an economic tool than as a way to protect vested interests. ThaIn the standard two-country example, the only resource available in either country is:Brazil can produce more beef than its partner, while the partner can produce more autos. Each country there ho