India is one of the largest net exporters of information technology (IT) software in the world. Firms such as Tata Consultancy Services (TCS), Infosys, Wipro and Mahindra Tech are all from India and derive significant sales from international markets. The export success of these firms and for India in the area of IT software is attributable primarily to the supply and availability of talented and relatively inexpensive software/IT engineers. Given this information, which trade theory most closely explains the dominance of India in IT software services?Group of answer choicesMercantilismHeckscher-Ohlin theoryNew Trade TheoryComparative Advantage

What comparative advantage did India have in entering high-tech markets like software development?

Which of the following statements regarding new trade theory is NOT true?Select one:a.The theory asserts that a country may dominate in the export of a good simply because it was lucky enough to have one or more firms among the first to produce that goodb.The theory highlights the value of economies of scale and first mover advantagesc.First movers can gain a scale-based cost advantage that later entrants find difficult to matchd.The theory argues that resource endowments and technological advantages are vital to succeed in international trade

The German automobile industry is known for producing and exporting high-quality cars throughout the world. Germany is fortunate to have good engineering skills, a cluster of automobile and auto-component manufacturers engendering a healthy competitive spirit amongst all, plus a very discerning set of customers who want safe, fast, and reliable cars. Which of the trade theory best explains the global dominance of the German auto industry?Group of answer choicesnew trade theoryabsolute advantagePorters national competitive advantage theoryHeckscher Ohlin Theory

What is a common obstacle faced by Indian SMEs in adopting advanced technologies?  A. Lack of skilled workforce  B. Excessive government intervention  C. Abundance of technological resources  D. Overinvestment in R&D

A country engaging in trade according to the principles of comparative advantage gains fromtrade because itA) is producing exports indirectly more efficiently than it could alternatively.B) is producing imports indirectly more efficiently than it could domestically.C) is producing exports using fewer labor units.D) is producing imports indirectly using more labor units.E) is producing exports while outsourcing services.