Accredited Test Bank Solution For
International Trade, 5th Edition Feenstra
[All Lessons Included]
Complete Chapter Solution Manual
are Included (Ch.1 to Ch.11)
• Rapid Download
• Quick Turnaround
• Complete Chapters Provided
, Table of Contents are Given Below
Here is the table of contents for International Trade, 5th Edition, by Robert C. Feenstra and Alan M. Taylor:
Part 1: Introduction to International Trade
1. Trade in the Global Economy
Part 2: Patterns of International Trade
2. Trade and Technology: The Ricardian Model
3. Gains and Losses from Trade in the Specific-Factors Model
4. Trade and Resources: The Heckscher–Ohlin Model
5. Movement of Labor and Capital Between Countries
Part 3: New Explanations for International Trade
6. Increasing Returns to Scale and Monopolistic Competition
7. Offshoring of Goods and Services
Part 4: International Trade Policies
8. Import Tariffs and Quotas Under Perfect Competition
9. Import Tariffs and Quotas Under Imperfect Competition
10. Export Policies in Resource-Based and High-Technology Industries
11. International Agreements on Trade and the Environment
This comprehensive structure provides a thorough overview of international trade theories, policies, and real-
world applications.
PART 1: INTRODUCTION TO INTERNATIONAL TRADE
Chapter 1: Trade in the Global Economy
Question 1:
What is the primary benefit of international trade according to the theory of comparative advantage?
A) It allows countries to achieve self-sufficiency.
B) It enables countries to specialize in producing goods where they have a relative efficiency.
C) It eliminates the need for domestic production.
D) It ensures equal trade balances between countries.
PAGE 1
,Answer: B
Explanation: The theory of comparative advantage suggests that countries benefit from specializing in the
production of goods and services where they have a relative efficiency, thereby increasing overall economic
welfare through trade.
Question 2:
Which of the following is NOT a traditional argument against free trade?
A) Loss of domestic jobs
B) Trade can lead to lower quality products
C) Free trade can harm infant industries
D) Free trade increases consumer choice
Answer: D
Explanation: Increasing consumer choice is typically seen as a benefit of free trade, not a reason against it. The
other options are common traditional arguments used to oppose free trade.
Question 3:
What does the Heckscher-Ohlin model primarily explain?
A) Trade patterns based on comparative advantage
B) Trade patterns based on factor endowments
C) The impact of tariffs on international trade
D) The role of technology in international trade
Answer: B
Explanation: The Heckscher-Ohlin model explains international trade patterns based on countries' relative
factor endowments, such as labor, capital, and land.
Question 4:
Which of the following best describes "absolute advantage"?
A) The ability to produce a good at a lower opportunity cost
B) The ability to produce a good using fewer resources
C) The ability to produce more of a good using the same resources
D) Both B and C
Answer: D
Explanation: Absolute advantage refers to the ability to produce a good using fewer resources (B) or to
produce more of a good with the same resources (C). Therefore, both B and C are correct.
PAGE 2
, Question 5:
What is a "trade deficit"?
A) When a country's exports exceed its imports
B) When a country's imports exceed its exports
C) When a country's trade is balanced
D) When a country does not engage in trade
Answer: B
Explanation: A trade deficit occurs when a country's imports exceed its exports.
Question 6:
Which organization is primarily responsible for regulating international trade?
A) World Health Organization (WHO)
B) World Trade Organization (WTO)
C) International Monetary Fund (IMF)
D) United Nations (UN)
Answer: B
Explanation: The World Trade Organization (WTO) is the primary international body responsible for
regulating and facilitating international trade.
Question 7:
What is the "balance of payments"?
A) A record of all financial transactions made between consumers and businesses
B) A record of all economic transactions between residents of a country and the rest of the world
C) The difference between a country's exports and imports
D) The total amount of a country's foreign debt
Answer: B
Explanation: The balance of payments is a comprehensive record of all economic transactions between
residents of a country and the rest of the world over a specific period.
Question 8:
Which term describes a tax imposed on imported goods?
A) Tariff
B) Quota
C) Subsidy
D) Embargo
PAGE 3
International Trade, 5th Edition Feenstra
[All Lessons Included]
Complete Chapter Solution Manual
are Included (Ch.1 to Ch.11)
• Rapid Download
• Quick Turnaround
• Complete Chapters Provided
, Table of Contents are Given Below
Here is the table of contents for International Trade, 5th Edition, by Robert C. Feenstra and Alan M. Taylor:
Part 1: Introduction to International Trade
1. Trade in the Global Economy
Part 2: Patterns of International Trade
2. Trade and Technology: The Ricardian Model
3. Gains and Losses from Trade in the Specific-Factors Model
4. Trade and Resources: The Heckscher–Ohlin Model
5. Movement of Labor and Capital Between Countries
Part 3: New Explanations for International Trade
6. Increasing Returns to Scale and Monopolistic Competition
7. Offshoring of Goods and Services
Part 4: International Trade Policies
8. Import Tariffs and Quotas Under Perfect Competition
9. Import Tariffs and Quotas Under Imperfect Competition
10. Export Policies in Resource-Based and High-Technology Industries
11. International Agreements on Trade and the Environment
This comprehensive structure provides a thorough overview of international trade theories, policies, and real-
world applications.
PART 1: INTRODUCTION TO INTERNATIONAL TRADE
Chapter 1: Trade in the Global Economy
Question 1:
What is the primary benefit of international trade according to the theory of comparative advantage?
A) It allows countries to achieve self-sufficiency.
B) It enables countries to specialize in producing goods where they have a relative efficiency.
C) It eliminates the need for domestic production.
D) It ensures equal trade balances between countries.
PAGE 1
,Answer: B
Explanation: The theory of comparative advantage suggests that countries benefit from specializing in the
production of goods and services where they have a relative efficiency, thereby increasing overall economic
welfare through trade.
Question 2:
Which of the following is NOT a traditional argument against free trade?
A) Loss of domestic jobs
B) Trade can lead to lower quality products
C) Free trade can harm infant industries
D) Free trade increases consumer choice
Answer: D
Explanation: Increasing consumer choice is typically seen as a benefit of free trade, not a reason against it. The
other options are common traditional arguments used to oppose free trade.
Question 3:
What does the Heckscher-Ohlin model primarily explain?
A) Trade patterns based on comparative advantage
B) Trade patterns based on factor endowments
C) The impact of tariffs on international trade
D) The role of technology in international trade
Answer: B
Explanation: The Heckscher-Ohlin model explains international trade patterns based on countries' relative
factor endowments, such as labor, capital, and land.
Question 4:
Which of the following best describes "absolute advantage"?
A) The ability to produce a good at a lower opportunity cost
B) The ability to produce a good using fewer resources
C) The ability to produce more of a good using the same resources
D) Both B and C
Answer: D
Explanation: Absolute advantage refers to the ability to produce a good using fewer resources (B) or to
produce more of a good with the same resources (C). Therefore, both B and C are correct.
PAGE 2
, Question 5:
What is a "trade deficit"?
A) When a country's exports exceed its imports
B) When a country's imports exceed its exports
C) When a country's trade is balanced
D) When a country does not engage in trade
Answer: B
Explanation: A trade deficit occurs when a country's imports exceed its exports.
Question 6:
Which organization is primarily responsible for regulating international trade?
A) World Health Organization (WHO)
B) World Trade Organization (WTO)
C) International Monetary Fund (IMF)
D) United Nations (UN)
Answer: B
Explanation: The World Trade Organization (WTO) is the primary international body responsible for
regulating and facilitating international trade.
Question 7:
What is the "balance of payments"?
A) A record of all financial transactions made between consumers and businesses
B) A record of all economic transactions between residents of a country and the rest of the world
C) The difference between a country's exports and imports
D) The total amount of a country's foreign debt
Answer: B
Explanation: The balance of payments is a comprehensive record of all economic transactions between
residents of a country and the rest of the world over a specific period.
Question 8:
Which term describes a tax imposed on imported goods?
A) Tariff
B) Quota
C) Subsidy
D) Embargo
PAGE 3
