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91. According to the new trade theory:
92. The economic and strategic advantages that accrue to early entrants in an industry are called:
93. Which of the following advantages is most likely to be enjoyed by a company as a part of the first-mover
advantages?
94. One of the suggestions of the new trade theory is that:
95. Which of the following creates a barrier to subsequent entries in an industry dominated by first movers?
96. The new trade theory is at variance with which of the following theories, which suggests that a country will
predominate in the export of a product when it is particularly well endowed with those factors used intensively
in its manufacture?
97. Which of the following is an empirically supported prediction of the new trade theory?
98. Which of the following theories supports government intervention and strategic trade policy?
99. The new trade theory diverts from its advocacy of free trade by suggesting that:
100. Which of the following formed the crux of Porter's study of national competitive advantage?
101. According to Porter's diamond, what are factor endowments?
102. Which of the following is true of the four attributes that make Porter's diamond?
103. Which of the following is one of the four factors included in Porter's diamond?
104. Which of the following factor endowments would be classified as a basic factor by Michael Porter?
105. Which of the following is true of factor endowments according to Porter?
106. Which of the following components of Porter's diamond is particularly important in shaping the attributes
of domestically made products and in creating pressures for innovation and quality?
107. Porter argues that a nation's firms gain competitive advantage if their domestic consumers are:
108. Porter, in his diamond model, suggested that there is a strong association between which of the following
and the creation and persistence of competitive advantage in an industry?
109. Which of the following was a pervasive finding of Porter's study?
110. If a company were to draw from the ideas proposed in the various theories of international trade, from a
profit perspective, how would it go about selecting locations for its businesses?
111. Which of the following helps a firm to preempt available demand, gain cost advantages related to volume,
and build an enduring brand ahead of later competitors?
112. What is meant by the term free trade? Is free trade compatible with the concept of mercantilism?
113. Mercantilism viewed trade as a zero-sum game. Discuss Adam Smith's and David Ricardo's stand on this
view. Also discuss the phenomenon of neo-mercantilism.
114. Discuss Adam Smith's concept of absolute advantage.
115. How does the theory of comparative advantage suggest that trade is a positive-sum game to a greater
degree than the theory of absolute advantage?
116. Discuss Paul Samuelson's critique of free trade.
117. Describe the Leontief paradox.
118. Describe the shortcomings of the product life-cycle theory.
119. Briefly describe the new trade theory.
120. Outline the relationship between economies of scale, first-mover advantages, and the pattern of trade as
indicated by new trade theory.
121. Identify and briefly describe the four broad attributes that constitute Porter's diamond.
122. Briefly explain how demand conditions shape the environment in which local firms compete.
123. How does Porter's theory predict patterns in international trade? Do his predictions turn out to be accurate
in a real-world scenario?
124. From a profit perspective based on the various international theories, how would a business go about
choosing locations for its various productive activities?
125. Discuss the policy implications of Porter's theory of national competitive advantage.
