Question 16 Which of the following is a reason why trade and

Question 16

Which of the following is a reason why trade and geography are linked?

Select one:

a. Many industries have no economies of scale.

b. Some locations give access to pools of skilled labor or special resources.

c. Competition means that all firms want to locate near each other.

d. There are high costs of locating in large urban areas.

Question 18

Which of the following would NOT be associated with the LATE PHASE of the product cycle?

Select one:

a. Consumption in high income countries begins to exceed production.

b. Increasing share of output is moving to developing countries where abundant low skilled and semi-skilled labor keep production costs low.

c. There is experimentation and improvement in design and manufacturing.

d. Consumption continues to grow in low income countries.

Question 19

The openness indicator is measured as

Select one:

a. exports divided by GDP.

b. imports divided by GDP.

c. exports plus imports divided by GDP.

d. exports minus imports divided by GDP.

e. exports divided by imports.

Question 20

From the late 1940s until the creation of the WTO, the organization that was primarily responsible for conducting rounds of trade negotiations was the

Select one:

a. United Nations.

b. IMF.

c. World Bank.

d. GATT.

e. ITO.

Solution

16. The reason why trade and geography are linked is that some locations give access to pools of labor or special resources. This leads to different products being produced at different places leading to trade. Hence the correct answer is (B).

18. The correct answer is (A) because during the late phase of product cycle the growth in product sales falls and this is because consumption in high income actually falls. Thus the correct answer is (A).

19. Openness Index is measured by total trade divided by GDP i.e total exports plus total imports divided by GDP. The correct answer is (C).

?20. ?From the late 1940s until the creation of the WTO, the organization that was primarily responsible for conducting rounds of trade negotiations was the? GATT. Hence the correct answer is (D).