True false question (5 points) 1. Absolute advantage theory can not apply in the case one country having higher productivity in producing all goods.
2. According to comparative advantage theory, the trade ratio to benefit both countries must be higher than the two individual countries’ opportunity cost.
3. Open economy will export goods if the world price of the goods is smaller than the domestic price at equilibrium.
4. The deadweight lost in the case that government imposes import quota is always greater than the deadweight lost in the case that government imposes tariff, leading to the same import quantity.
5. According to H – O theory, the wage of labor in labor abundant country will increase thanks to international trade.

Which of the following is a disadvantage of equity alliances when compared to non-equity alliances? 1. they are reflective of weaker ties between firms.2. they do not permit the exchange of explicit knowledge.3. they are more likely to bring about lack of trust and commitment.4. they require significantly higher levels of investment.

Casey communications recently issued new common stock and used the proceeds to pay off some of its short-term notes payable. this action had no effect on the company's total assets or operating income. which of the following effects would occur as a result of this action? a. the company's current ratio increased.b. the company's times interest earned ratio decreased.c. the company's basic earning power ratio increased.d. the company's equity multiplier increased.e. the company's debt ratio increased.

Suppose that the u.s. dollars-mexican pesos exchange rate is fixed by the u.s. and mexican governments. assume also that labor is mobile between the united states and mexico due to low transportation costs.which of the following situations is likely to happen as a result of a simultaneous increase in the demand for u.s. goods and decrease in the demand for mexican goods? (pick mexican unemployment rate increases, and the country undergoes bad economic times for a sustained u.s. unemployment rate increases, and the country undergoes bad economic times for a sustained mexican unemployment rate rises at first, but it soon drops as unemployed mexicans move to the united states for mexican unemployment rate rises at first, but then it drops as mexican pesos depreciate against u.s. dollars.