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  3. Liberty BUSI 303 Chapter 6 Learnsmart Assignment Liberty University Answers Complete Solutions

Liberty BUSI 303 Chapter 6 Learnsmart Assignment Liberty University Answers Complete Solutions

 

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can lead to a country gaining form a shift in production, but – at the same time – can also cause suffering.

Which theory was based on the observation that early in the development of a commodity, all the parts and labor come from the area in which it was invented?

Portugal can produce wine and cloth with less labor than England. But, given all factor of production, England can produce cloth relatively better than Portugal. According to Ricardo’s theory of comparative advantage, it make sense for England to

The Middle East has an abundance of oil reserves; therefore, exporting oil supports the theory which is based on creating an advantage based on factor endowments.

In an industry, national advantage can be gained by the support of competitive industries.

In a country like Mexico, with access to cheap labor and diverse plant life, it makes sense to agricultural goods.

Which of the following statements regarding openness of an economy and growth is true?

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one explanation for the Leontief paradox is that the U.S. can export goods produced with

Which theory predicts trade patterns more accurately?

Free trade the efficient use of resources within a country.

Porter’s theory of national competitive advantage stresses a decreased commitment by companies to research and development.

Since the global market can only support one producer of superjumbo aircraft, Airbus had the benefit of a(n) .

The Leontief paradox would be used to explain which of these situations?

If we control the technological impact on productivity, then the has more predictive power.

According to the Samuelson critique, middle class wages in the United States will be as the result of the offshoring of service jobs and rapid advances in foreign labor productivity.

What is the likely result for the gains from specialization according to the concept of diminishing returns?

Ricardo’s theory of comparative advantage assumes returns to scale.

theory suggests that through its impact on economies of scale, trade can increase the variety of goods available and decrease the average cost of these goods.

Which form of returns to specialization means that the units of resources required to produce one unit are assumed to remain constant no matter where a country is on the production possibilities frontier?

The main criticism of mercantilism was that

A criticism of Ricardo’s theory of comparative advantage is that it is a simple model that includes many

While not as relevant today, the trade theory that was useful in explaining the pattern of trade when the U.S. dominated the global market is the theory.

What theory states that the global market may only be able to support a limited number of firms in industries when the output required to attain economies of scale represents a significant amount of total world demand?

The U.S. has an abundance of arable land and has long been an exporter of agricultural products. This is a good application of the Heckscher-Ohlin theory.

True

According to the theory of international trade, it makes sense for a company to disperse its production to those countries where

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