Quiz 5 321
Chapter 5 Study Guide Questions
1. There are two perspectives in international trade - a protectionist perspective and a free trade perspective. Explain each one.
2. What is the key question that the theories of international trade are trying to answer?
3. Name the first classical theory of international trade.
b. When was in created?
c. Who was in created by?
d. Explain the key points of this theory.
e. How do scholars, researchers and economists feel about this theory today?
4. Name the second classical theory of international trade.
b. When was in created?
c. Who was in created by?
d. What is absolute advantage?
e. Give an example of absolute advantage between Portugal and England with wool and grapes.
f. Explain the key points of this theory.
g. Explain how this theory is different from the first classical theory of international trade
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Chapter 5 Study Guide Questions
5. Name the third classical theory of international trade.
b. When was in created?
c. Who was in created by?
d. What does this theory assume about absolute advantage?
e. Explain the key points of this theory through the Europe and India example in your book. Why would Europe still want to trade with india, if it was better at producing both aircrafts and cars?
f. Explain how this theory is related to you as an individual when you hire workers to do tasks that you can do yourself, such as cleaning and driving.
6. Name the third classical theory of international trade.
b. When was in created?
c. Who was in created by?
d. Explain the key points of this theory.
7. Explain Porters theory of national competitive advantage. What does this theory try to predict?
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Chapter 5 Study Guide Questions
8. What is protectionism?
9. Define anti-dumping duty. What did companies do that initiated this policy?
10. What are the three main economic arguments against trade?
11. Explain what distribution effects means.
12. What are the four main political arguments against international trade? Briefly explain each one.
13. Define trade embargo and give an example.
The KEY implications and takeaway from this chapter:
Be aware of the arguments about international trade and understand how to benefit your firm or your country from international trade.
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