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

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 tradeClear my choice

The illustrative cases of Airbus and Boeing and their phenomenal growth in the global markets is reflective of the following trade theory Group of answer choicesNew Trade TheoryMercantilismTheory of Absolute AdvantagePorter's Diamond Framework

Which trade theory advocates that a nation should export more than it imports to build wealth?A) Factor Endowment TheoryB) MercantilismC) Absolute Cost TheoryD) Opportunity Cost Theory

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

Kleine Autos is a German car manufacturer. They only have German suppliers and only sell cars in Germany. Why Kleine Autos is exposed to foreign exchange risk?Group of answer choicesThey are not exposed to foreign exchange riskTheir customers might export the cars abroadTheir customers might pay in another currencyThey have non-German competitors