Adam Smith identified the basic reason for trade between two nations as

Related MCQs

• If a nations terms of trade is ½ its trade partners terms of trade is
• That identical godos should cost the same in all nations, assuming tis costless to ship godos between nations and there are no barriers to trade, is a reflection of the:
• A primary reason why nations conduct international trade is because:
• The H O theory postulates that as a result of trade the differences in factor prices between nations
• If relatively capital-abundant country A opens trade with relatively labor- abundant country B an the trade takes place in accordance with the Heckscher-Ohlin Theorem. What would be the consequence for factor prices (w/r) in the two countries?
• international trade refers to trade between
• Which among the following best explains the difference between Trade in Invisibles and merchandise trade?
• The trade theory that states that nations should accumulate financial wealth, usually in the form of gold, by encouraging exports and discouraging imports is called
• “Free trade between two countries in H O model will equalize relative factor prices provided there is incomplete specialization.” This is
• Trade between two countries can benefit both countries if