Chapter 1: Trade in the Global Economy
TEST BANK FOR INTERNATIONAL
ECONOMICS 5TH EDITION BY ROBERT C
FEENSTRA, ALAN M. TAYLOR LATEST
UPDATE 2025/2026 A+
Page 1
, Chapter 1: Trade in the Global Economy
TABLE OF CONTENTS
CHAPTER 1: TRADE IN THE GLOBAL ECONOMY
1 International Trade
2 Migration And Foreign Direct Investment
CHAPTER 2: TRADE AND TECHNOLOGY: THE RICARDIAN MODEL
1 Reasons For Trade
2 Ricardian Model Of Trade
3 Determining The Pattern Of International Trade
4 Solving For International Prices
CHAPTER 3: GAINS AND LOSSES FROM TRADE IN THE SPECIFIC-
FACTORS MODEL
1 Specific-Factors Model
2 Earnings Of Labor
Change In Relative Price Of Manufactures
Application: Manufacturing And Services In The United States: Employment And
Wages Across Sectors
Application: The “China Shock” And Employment In The United States
3 Earnings Of Capital And Land
CHAPTER 4: TRADE AND RESOURCES: THE HECKSCHER–OHLIN
MODEL
1 Heckscher–Ohlin Model
2 Testing The Heckscher–Ohlin Model
3 Effects Of Trade On Factor Prices
CHAPTER 5: MOVEMENT OF LABOR AND CAPITAL BETWEEN
COUNTRIES
1 Movement Of Labor Between Countries: Migration
2 Movement Of Capital Between Countries: Foreign Direct Investment
3 Gains From Labor And Capital Flows
1 Basics Of Imperfect Competition
Demand With Duopoly
2 Trade Under Monopolistic Competition
3 Free-Trade Agreements Within North America
4 Intra-Industry Trade And The Gravity Equation
CHAPTER 7: OFFSHORING OF GOODS AND SERVICES
Page 2
, Chapter 1: Trade in the Global Economy
1 A Model Of Offshoring
2 Explaining Changes In Wages And Employment
3 The Gains From Offshoring
4 The Future Of Offshoring And You
CHAPTER 8: IMPORT TARIFFS AND QUOTAS UNDER PERFECT
COMPETITION
1 A Brief History Of The World Trade Organization
2 The Gains From Trade
3 Import Tariffs For A Small Country
4 Import Tariffs For A Large Country
5 Import Quotas
CHAPTER 9: IMPORT TARIFFS AND QUOTAS UNDER IMPERFECT
COMPETITION
1 Tariffs And Quotas With Home Monopoly
2 Tariffs With Foreign Monopoly
3 Dumping
4 Infant Industry Protection
5 Conclusions
CHAPTER 10: EXPORT POLICIES IN RESOURCE-BASED AND HIGH-
TECHNOLOGY INDUSTRIES
1 WTO Goals On Agricultural Subsidies
Other Matters From The Hong Kong WTO Meeting
2 Export Subsidies In A Small Home Country
3 Export Subsidies In A Large Home Country
4 Production Subsidies
5 Export Tariffs
6 Export Quotas
7 High-Technology Export Subsidies
8 Conclusions
CHAPTER 11: INTERNATIONAL AGREEMENTS ON TRADE AND THE
ENVIRONMENT
1 Multilateral Trade Agreements
2 Regional Trade Agreements
Characteristics Of Regional Trade Agreements
3 International Agreements On The Environment
Page 3
, Chapter 1: Trade in the Global Economy
What Country Was The World's Largest Exporter Of Goods In 2012?
China
Germany
The United States
Japan
CORRECT ANSWER:: A Difficulty: Easy
Section: Introduction Skill Descriptor: Fact- Based Topic: Introduction
Which Of The Following Is A Trade Flow?
Robert Feenstra Purchases $100 Million Of British Treasury Bonds.
Robert Feenstra Purchases A Yogurt Factory In France.
Neither Of Robert Feenstra's Purchases Is Considered A Trade Flow.
Both Of Robert Feenstra's Purchases Are Considered Trade Flows.
CORRECT ANSWER:: C Difficulty: Easy Section:
Introduction
Skill Descriptor: Definitional Topic: Introduction
Currently, Which Of The Following Countries Is The World's Largest Exporter Of Goods (In
Dollar Volume)?
China
The United States
Japan
Germany
CORRECT ANSWER:: A Difficulty: Moderate
Section: Introduction Skill Descriptor: Fact-
Based Topic: Introduction
Currently, Which Of The Following Countries Is The World's Largest Exporter Of Goods And
Services (In Dollar Volume)?
China
The United States
Japan
Germany
CORRECT ANSWER:: B Difficulty: Moderate
Section: Introduction Skill Descriptor: Fact-
Based Topic: Introduction
What Is The Term For A Capital Flow That Is Used To Purchase Or Build A Tangible Asset Like
A Factory?
Migration
Service Exports
Service Imports
Foreign Direct Investment
Page 4
TEST BANK FOR INTERNATIONAL
ECONOMICS 5TH EDITION BY ROBERT C
FEENSTRA, ALAN M. TAYLOR LATEST
UPDATE 2025/2026 A+
Page 1
, Chapter 1: Trade in the Global Economy
TABLE OF CONTENTS
CHAPTER 1: TRADE IN THE GLOBAL ECONOMY
1 International Trade
2 Migration And Foreign Direct Investment
CHAPTER 2: TRADE AND TECHNOLOGY: THE RICARDIAN MODEL
1 Reasons For Trade
2 Ricardian Model Of Trade
3 Determining The Pattern Of International Trade
4 Solving For International Prices
CHAPTER 3: GAINS AND LOSSES FROM TRADE IN THE SPECIFIC-
FACTORS MODEL
1 Specific-Factors Model
2 Earnings Of Labor
Change In Relative Price Of Manufactures
Application: Manufacturing And Services In The United States: Employment And
Wages Across Sectors
Application: The “China Shock” And Employment In The United States
3 Earnings Of Capital And Land
CHAPTER 4: TRADE AND RESOURCES: THE HECKSCHER–OHLIN
MODEL
1 Heckscher–Ohlin Model
2 Testing The Heckscher–Ohlin Model
3 Effects Of Trade On Factor Prices
CHAPTER 5: MOVEMENT OF LABOR AND CAPITAL BETWEEN
COUNTRIES
1 Movement Of Labor Between Countries: Migration
2 Movement Of Capital Between Countries: Foreign Direct Investment
3 Gains From Labor And Capital Flows
1 Basics Of Imperfect Competition
Demand With Duopoly
2 Trade Under Monopolistic Competition
3 Free-Trade Agreements Within North America
4 Intra-Industry Trade And The Gravity Equation
CHAPTER 7: OFFSHORING OF GOODS AND SERVICES
Page 2
, Chapter 1: Trade in the Global Economy
1 A Model Of Offshoring
2 Explaining Changes In Wages And Employment
3 The Gains From Offshoring
4 The Future Of Offshoring And You
CHAPTER 8: IMPORT TARIFFS AND QUOTAS UNDER PERFECT
COMPETITION
1 A Brief History Of The World Trade Organization
2 The Gains From Trade
3 Import Tariffs For A Small Country
4 Import Tariffs For A Large Country
5 Import Quotas
CHAPTER 9: IMPORT TARIFFS AND QUOTAS UNDER IMPERFECT
COMPETITION
1 Tariffs And Quotas With Home Monopoly
2 Tariffs With Foreign Monopoly
3 Dumping
4 Infant Industry Protection
5 Conclusions
CHAPTER 10: EXPORT POLICIES IN RESOURCE-BASED AND HIGH-
TECHNOLOGY INDUSTRIES
1 WTO Goals On Agricultural Subsidies
Other Matters From The Hong Kong WTO Meeting
2 Export Subsidies In A Small Home Country
3 Export Subsidies In A Large Home Country
4 Production Subsidies
5 Export Tariffs
6 Export Quotas
7 High-Technology Export Subsidies
8 Conclusions
CHAPTER 11: INTERNATIONAL AGREEMENTS ON TRADE AND THE
ENVIRONMENT
1 Multilateral Trade Agreements
2 Regional Trade Agreements
Characteristics Of Regional Trade Agreements
3 International Agreements On The Environment
Page 3
, Chapter 1: Trade in the Global Economy
What Country Was The World's Largest Exporter Of Goods In 2012?
China
Germany
The United States
Japan
CORRECT ANSWER:: A Difficulty: Easy
Section: Introduction Skill Descriptor: Fact- Based Topic: Introduction
Which Of The Following Is A Trade Flow?
Robert Feenstra Purchases $100 Million Of British Treasury Bonds.
Robert Feenstra Purchases A Yogurt Factory In France.
Neither Of Robert Feenstra's Purchases Is Considered A Trade Flow.
Both Of Robert Feenstra's Purchases Are Considered Trade Flows.
CORRECT ANSWER:: C Difficulty: Easy Section:
Introduction
Skill Descriptor: Definitional Topic: Introduction
Currently, Which Of The Following Countries Is The World's Largest Exporter Of Goods (In
Dollar Volume)?
China
The United States
Japan
Germany
CORRECT ANSWER:: A Difficulty: Moderate
Section: Introduction Skill Descriptor: Fact-
Based Topic: Introduction
Currently, Which Of The Following Countries Is The World's Largest Exporter Of Goods And
Services (In Dollar Volume)?
China
The United States
Japan
Germany
CORRECT ANSWER:: B Difficulty: Moderate
Section: Introduction Skill Descriptor: Fact-
Based Topic: Introduction
What Is The Term For A Capital Flow That Is Used To Purchase Or Build A Tangible Asset Like
A Factory?
Migration
Service Exports
Service Imports
Foreign Direct Investment
Page 4
