1. According to the Heckscher-Ohlin model what drives international trade?

1. Differences in factor endowments and factor intensities
2. Differences in factor productivity and wage rates
3. Differences in product endowments and factor intensities
4. Differences in factor productivity and inflation

2. According to Vernon’s Product Life Cycle Theory firms will adopt mass production techniques and initiate foreign manufacturing in the __________ stage of the cycle.

1. First
2. Second
3. Third
4. Fourth

3. When Taiwan mandates extensive purity tests for imported fruit juices but does not subject domestically produced juices to the same tests it is using _____________ as a protectionist measure:

1. ISO 9000
2. Quotas
3. VERs
4. Product standards
5. WTO regulations

4. The keiretsu system which involves tightly knit corporate and cultural relationships between Japanese manufacturers, wholesalers and retailers is a form of:

1. Caste system
2. Economic bloc
3. Protectionism
4. Social institution

5. What is the core mission of the WTO?

1. To enforce tariffs
2. To keep oil prices stable
3. To facilitate international trade and investment
4. To broker agricultural products between companies