MAN 3600 Unit 4 Questions Fully Solved.

________ refers to the superior features of a country that provide unique benefits in global competition, typically derived from either natural endowments or deliberate national policies. - Answer comparative advantage ________ is the belief that national prosperity is the result of a positive balance of trade, achieved by maximizing exports and minimizing imports. - Answer mercantilism Which of the following is an element of the comparative advantage principle? relative efficiency of production per unit cost advantage absolute cost of production negative balance of trade - Answer relative efficiency of production Which of the following was the analysis revealed by the "Leontief paradox"? that the U.S. often exported labor-intensive goods and imported more capital-intensive goods that despite having an abundant pool of labor, the U.S. was exporting capital-intensive goods that international trade was simpler than perceived that contrary to the popular belief, new products are more likely to originate in developing economies - Answer that the U.S. often exported labor-intensive goods and imported more capital-intensive goods In the ________ phase of international product life cycle theory, knowledge about how to produce the product is widespread and manufacturing becomes straightforward in many developing countries. - Answer standardization According to Michael Porter, a nation's factor endowments help determine its ________. - Answer national competitive advantage