The growth of small-scale production technology will most likely enable small countries to produce products efficiently for their own consumption.

The growth of small-scale production technology will most likely enable small countries to produce products efficiently for their own consumption.

Answer: TRUE

The finite nature of natural resources should work as a disadvantage for the export prices of developing countries.

The finite nature of natural resources should work as a disadvantage for the export prices of developing countries.

Answer: FALSE

The combination of free trade and free movement of production factors offers maximum production efficiency.

The combination of free trade and free movement of production factors offers maximum production efficiency.

Answer: TRUE

The term brain drain describes the export of high-technology products in exchange for low-technology products.

The term brain drain describes the export of high-technology products in exchange for low-technology products.

Answer: FALSE

The foreign-born population as a percentage of total population is substantial for some countries and insignificant for others.

The foreign-born population as a percentage of total population is substantial for some countries and insignificant for others.

Answer: TRUE

The international mobility of labor includes workers, students, tourists, and retirees who travel to another country.

The international mobility of labor includes workers, students, tourists, and retirees who travel to another country.

Answer: FALSE

Companies and individuals transfer capital internationally primarily because of expectations of earning higher returns.

Companies and individuals transfer capital internationally primarily because of expectations of earning higher returns.

Answer: TRUE

A strategic trade policy is one that develops industries to lessen dependence on foreign military goods.

A strategic trade policy is one that develops industries to lessen dependence on foreign military goods.

Answer: FALSE

The existence of the four favorable conditions of the diamond of national advantage does not guarantee that an industry will develop in a given locale.

The existence of the four favorable conditions of the diamond of national advantage does not guarantee that an industry will develop in a given locale.

Answer: TRUE

The four favorable domestic conditions of the diamond of national advantage help to explain how and where globally competitive companies develop and sustain themselves.

The four favorable domestic conditions of the diamond of national advantage help to explain how and where globally competitive companies develop and sustain themselves.

Answer: TRUE

An exception to the PLC theory in terms of production location is often a product with very rapid change in innovation.

An exception to the PLC theory in terms of production location is often a product with very rapid change in innovation.

Answer: TRUE

Luxury products are the most likely types of products to behave according to the product life cycle theory of trade.

Luxury products are the most likely types of products to behave according to the product life cycle theory of trade.

Answer: FALSE

According to the PLC theory of trade, most new products are produced in countries where wage rates are low.

According to the PLC theory of trade, most new products are produced in countries where wage rates are low.

Answer: FALSE

Many products' location of production will shift internationally as the products go through their life cycle.

Many products' location of production will shift internationally as the products go through their life cycle.

Answer: TRUE

Trade occurs more between culturally dissimilar countries than between culturally similar countries.

Trade occurs more between culturally dissimilar countries than between culturally similar countries.

Answer: FALSE

Most world trade takes place between raw material exporters and manufacturing exporters.

Most world trade takes place between raw material exporters and manufacturing exporters.

Answer: FALSE

The factor proportions theory holds that countries should improve their competitiveness by importing capital and skilled employees from abroad.

The factor proportions theory holds that countries should improve their competitiveness by importing capital and skilled employees from abroad.

Answer: FALSE

The factor proportions theory holds that countries should concentrate production on those products that use their most abundant production factors.

The factor proportions theory holds that countries should concentrate production on those products that use their most abundant production factors.

Answer: TRUE

The top 10 exporting countries are dominated by developing countries.

The top 10 exporting countries are dominated by developing countries.

Answer: FALSE

Countries with large land areas are generally less dependent on trade than countries with small land areas.

Countries with large land areas are generally less dependent on trade than countries with small land areas.

Answer: TRUE