Foreıgn Trade

Yanıt Açıklaması: Constant returns to scale refers to the same amount of output increase with the increase within the factors of production. Labor-abundant country means that the ratio of the total amount of labor to the total amount of capital available in the country is greater than the other country. On the other hand, capital-abundant country means that the ratio of the total amount of capital to the total amount of labor available in the country is greater than the other country. Labor-intensive commodity is produced with a higher (L/K) ratio than the other commodity in both countries. Capital-intensive commodity is produced with a higher (K/L) ratio than the other commodity in both countries.

Yanıt Açıklaması: Intra- industry trade may arise between similar per capita income countries if the distribution of total income differs. This postulation belongs to Grubel, who has significant contributions on the theory of intra-industry trade.

Yanıt Açıklaması: The Model divides the life cycle of a new product into five stages; new-product stage,  product-growth stage, product-maturity stage, product-standardization, product-decline stage

Yanıt Açıklaması: The most referred demand oriented model of international trade is the Overlap-ping Demands Model. The Model was developed by the Swedish economist Staffan Linder in 1961 (Linder, 1961). Representing the name of the economist, the Overlapping Demands Model usually entitled as Linder Model. The correct answer is " C ".

Yanıt Açıklaması: Acquired Advantage; A country’s advantage in terms of products.

Yanıt Açıklaması: Today, the countries trying to give foreign trade surplus for social and political purposes are called Neomercantilist.

Yanıt Açıklaması: Opportunity costs represent the benefits an individual, investor or business misses out on when choosing one alternative over another.

Yanıt Açıklaması: KEY TERMS AND CONCEPTS OF INTERNATIONAL TRADE International trade which constitutes one of the two main parts of international economics has its own key words and concepts. Although they are mostly well-known, it’d be useful to give their precise meanings so as to provide conformity and consistency throughout the chapters. (1) Volume of trade: Defining the key terms and concepts has to start with the term volume of trade. Volume of trade gives the total amount of imports and exports. Imports are the goods or services that are bought from a foreign country while exports refer to the goods or services that are sold to a foreign country. Thus, balance of trade gives the difference between total imports and total exports. If total imports are more than the total exports within an economy, then there is a trade deficit. On the other hand, when total exports exceed total imports, it means that there is a trade surplus.

Yanıt Açıklaması: Business-to-business (B2B) e-commerce: It includes a broad range of intercompany transactions like purchases of services, manufactured parts and components, capital equipment and technology (Rucking-Reiley and Spulber, 2001, 55). Doğru yanıt " D " dir.

Yanıt Açıklaması: Economies of scale: Economies of scale exist when the increase in the output is proportionally more than the increase in the input. The correct answer is " E " .

Yanıt Açıklaması: Volume of trade gives the total amount of imports and exports. B alance of trade gives the difference between total imports and total exports. If total imports are more than the total exports within an economy, then there is a trade deficit. On the other hand, when total exports exceed total imports, it means that there is a trade surplus.The correct answer is "B".

Yanıt Açıklaması: Factor-Intensity Reversal explains the situation in which a commodity is the labor-intensive commodity in the labor-abundant country and the capital-intensive commodity in the capital abundant country.The Factor-Intensity Reversal rests on the elasticity of substitution of factors of production.

Yanıt Açıklaması: Hereditary skill : Special skills for production can be transferred from one generation to another and thus prolong for decades.

Yanıt Açıklaması: Patent rights: They are a type of intellectual property rights. Intellectual property is a general term referring to creations of the mind. Intellectual property rights designate creators with the right to protect themselves from the imitators for a limited period of time. Intellectual property rights have many types. For example; books, paintings and films are protected by copyrights while eligible inventions are protected by patents and brand names and product logos are registered as trademarks (WTO, 2019). The correct answer is " B " .

Yanıt Açıklaması: International economics is composed of two main parts, namely international trade and international money. Doğru yanıt " B " dir.

Yanıt Açıklaması: INTRODUCTION Countries engage in international trade because they benefit from doing so. Because it allows countries to specialize production so that resources are allocated most efficiently. Trade frees each country’s residents from having to consume goods in the same combination in which the local economy can produce them. Countries benefit from product specialization. Individuals may produce one good (e.g., bakery) and exchange that for other goods to consume (e.g., fruits).

Yanıt Açıklaması: The main aims of trade restrictions are: Protect domestic (not foreign) producers, Collect revenue to the Treasury, Adjust balance of payments, Implement (not ignore) infant-industry argument, Serve the diplomatic relations. The correct answer is C.

Yanıt Açıklaması: Decrease in the terms of trade refers to a deterioration in the terms of trade. Doğru yanıt " C " dir.

Yanıt Açıklaması: Perfect competition is one of the four types of the market types that the economists identify. The other market types are monopolistic competition, oligopoly and monopoly. Monopolistic competition is a market type in which many firms produce similar but differentiated commodities and compete with each other. The correct answer is " B " .