Which of the following statements is true about clusters.

Group of answer choices

the presence of clusters is a way for a nation to become competitive and innovative

Cluster is a way for a country to take advantage of international trade.

Cluster is a powerful geographic distance indicator in the CAGE framework

the advent of clusters is one of the ten world flatteners as discussed by Tom Friedman

For years California farmers have exported tons of Sacramento Valley-grown rice to Japan, but very little of that has ever ended up on the tables of sushi restaurants or Japanese households. Japan allows imports of 770,000 metric tons of rice, about 7% of annual consumption. It has been reported that the Japanese consumers have been offered 50,000, which is less than 1% of the total consumption. Instead, the Japanese government, which controls rice imports under a 2-decade-old quota system, has given away most of his and other foreign rice as food aid or sold it domestically as animal feed and an ingredient for rice crackers With more than 2 million farmers working on mostly small paddies, Japanese rice farming is widely considered inefficient. But farmers represent a core constituency for Prime Minister Shinzo Abe and his Liberal Democratic Party, and Japanese negotiators have been reluctant to give much ground when rice consumption continues to shrink with the nation's aging population. It's a hot-button issue in the U.S. too. The lack of access to Japanese markets for U.S. rice and other farm goods, as well as for automobiles, has long been seen by many Americans as emblematic of Japan's reluctance to open trade. Question: The rice import quota by the Japaneses government goes to show that it can be an effective mechanism to...

Group of answer choices

strengthen Japan's position at the negotiation table.

lift boycotts threats.

protect a domestic industry vital to the country's culture and economy.

ban dumping attempts by California farmers

The _________ is an institution dealing with the rules of trade between nations. At its heart are agreements negotiated and signed by the bulk of the world's trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business and resolve disputes.

Group of answer choices

MERCOSUR

CAN

WTO

EU

Full in the blank: if Japan and Italy can both produce automobiles, but Italy can produce sports cars of a higher quality and at a faster rate with greater profit, then Italy is said to have a(n) ___________advantagein that particular industry.

In this example, Japan may be better served to devote the limited resources and manpower to another industry or other types of vehicles, such as electric cars, rather than trying to compete with Italy's efficiency.

Group of answer choices

Absolute

Comparable

Comparative

Competitive

Fill in the blank: For years California farmers have exported tons of Sacramento Valley-grown rice to Japan, but very little of that has ever ended up on the tables of sushi restaurants or Japanese households. Japan allows imports of 770,000 metric tons of rice, about 7% of annual consumption. It has been reported that the Japanese consumers have been offered 50,000, which is less than 1% of the total consumption. Instead, the Japanese government, which controls rice imports under a 2-decade-old _______________ system, has given away most of his and other foreign rice as food aid or sold it domestically as animal feed and an ingredient for rice crackers With more than 2 million farmers working on mostly small paddies, Japanese rice farming is widely considered inefficient. But farmers represent a core constituency for Prime Minister Shinzo Abe and his Liberal Democratic Party, and Japanese negotiators have been reluctant to give much ground when rice consumption continues to shrink with the nation's aging population. It's a hot-button issue in the U.S. too. The lack of access to Japanese markets for U.S. rice and other farm goods, as well as for automobiles, has long been seen by many Americans as emblematic of Japan's reluctance to open trade.

Group of answer choices

boycott

import license

quota

embargo

USMCA (Formerly NAFTA) is a ____________ between ________, _________ and ________

Group of answer choices

Free trade Agreement - US, Europe and China

Common Market - Canada, US and Mexico

Free trade agreement - Canada, Mexico and US.

customs unions - Canada, Europe and USA

Fill in the blanks:

________________ refers to the uncontested superiority of a country or business to produce a particular good better. Whereas_______________introduces opportunity cost as a factor for analysis in choosing between different options for production diversification.

Group of answer choices

Comparable advantage - competitive advantage

Competitive advantage - comparative advantage

Absolute advantage - competitive advantage

Absolute advantage - comparative advantage

The essence of the ___________________ is as follows: each country will export that factor abundant goods, for the production of which it uses relatively abundant and cheap factors of production, and will import the goods, which require relatively scarce and expensive resources

Group of answer choices

Micahel Porter's National Diamond theory

Adams Smith's theory

David Ricardo's theory

Heckscher-Ohlin's theory

PreviousNext

The ________________ model essentially states that international trade occurs because countries differ in their relative factor endowments and commodities. Relative endowments of factors of production (land, labor and capital) determine a country's comparative advantage. Countries have comparative advantages in those goods for which the required factors of production are relatively abundant and cheap locally. This is because the prices of goods are ultimately determined by the prices of their inputs. Goods that require inputs that are locally abundant will be cheaper to produce than those goods than require inputs that are locally scarce. For example, a country where capital is abundant but labor is scarce will have comparative advantage in the production of capital intensive goods that require lots of capital but little labor. If capital is abundant, its price will be low.

Group of answer choices

Free Trade

Heckscher-Ohlin

Merchantilistic

National Diamond Framework

In Qatar, a worker can produce either one unit of salt or two units of pepper. In Korea, one worker can produce either two units of salt or three units of pepper. Compared to Qatar, Korea has a comparative advantage in the production of

Group of answer choices

neither salt and pepper

salt

Both salt and pepper

pepper

Assume that China has enough resources to produce either smartphones or computers. China can produce 10 computers or 10 smartphones. Computers generate a higher profit. Therefore, theopportunity cost is the difference in value lost from producing a smartphone rather than a computer. If China earns $100 for a computer and $50 for a smartphone then the opportunity cost is $50. If China has to choose between producing computers over smartphones it will select computers.

Question: This example best describes the concept of...

Group of answer choices

Comparative advantage

Absolute advantage

Competitive advantage

Complementary advantage

Simon Spurrell, the co-founder of the Cheshire Cheesesays the past three months have been among the worst in his career, with a lucrative EU business brought to a halt because of the extra costs and paperwork caused by a hard Brexit. Sales of his 25 to 30 pack of cheeses to individuals were growing and he had planned a 1m warehouse in Macclesfield to fulfill orders. But under the new rules each parcel needs to be accompanied by a health certificate costing 180, making low-value sales unviable. One option was to send truckloads of cheese to France or another EU country and fulfill orders from there. But he has decided against that "because even the paperwork for wholesale shipment of goods is so onerous that it will be a full-time job for the EU exports side of the business, adding even more costs".

Question: what type of trade barrier is illustrated in the above passage?

Group of answer choices

Quota

Tariff barrier

Embargo

Non-tariff barrier

Qatar has filed a complaint with the World Trade Organization over a trade blockade imposed by its Gulf neighbors. The complaint accuses Saudi Arabia, Bahrain and the United Arab Emirates of violating the trade group's "core laws and conventions on trade of goods and services, and trade-related aspects of intellectual property," according to a statement from Qatar's ministry of economy and commerce.

The three Gulf States cut diplomatic ties and transport links with Qatar on June 5, accusing it of funding terrorism. The gas-rich nation has been forced to engineer alternative supply chains. Cows have been flown in to ease a milk shortage, for example.The complaint filed with the WTO includes a request for "formal consultations" between Qatar and its neighbors. If an agreement is not reached within 60 days, the WTO will convene a dispute settlement panel.

Question: this passage best describes an example of a(n)...

Group of answer choices

Boycott

Embargo

Import taxes

Quota

The main difference between _______ and ____________ is that in the first one members countries can independently determine trade policies with nonmembers nations; whereas in the second one, members agree to treat trade tariffs with nonmember countries in a similar manner

Group of answer choices

free trade area - customs unions

common markets - economic union

customs unions - common market

economic union - free trade area

The European Union's single market is perhaps the most ambitious type of trade co-operation. That's because as well as eliminating tariffs, quotas or taxes on trade, it also includes the free movement of goods, services, capital, and people. It is the best example of ...

Group of answer choices

A free trade zone

A common market

A customs union

An economic union