1. Who is the professor known for his theory of competitive advantage?

- Michael porters

2. Give the meaning of IBRD

- International Bank for Reconstruction and Development

3. Who invented Product Life Cycle?

- Raymond Vernon

4. Give the meaning of IMF

- International Monetary Fund

5. It emerged after World War II and was developed in large part by business school professors, not economists.

- Modern Firm Based Theories

6. This is the ability of a country to produce a good more efficiently than another nation?

- Absolute advantage

7. In this situation a country cannot produce a product more efficiently than another country; however, it does produce
that product better and more efficiently than it does another good?

- Comparative advantage

8. He is one of the economist who invented Global Strategic Rivalry Theory

- Paul Krugman/Kelvin Lancaster

9. Porter perceived these advanced factors as providing a country with sustainable competitive advantage.

- Local Market Resources and Capabilities

10. It is the type of trade that when the value of exports is greater than the value of imports.

- Trade Surplus

11. It is the concept of exchanging goods and services between people or entities in two different countries.

- International Trade

12. It is the type of trade that when the value of imports is greater than the value of exports.

- Trade Deficit

13. The practice of imposing restrictions on imports and protecting domestic industry.

- Protectionism

14. It is the restrictions on the quantity of goods which may be imported, perhaps from specific country.

- Import Qoutas

15. It as an official ban or trade or other commercial activity with a particular country.

- Embargoes

16. It is a classical, country-based international trade theory that states that a country’s wealth is determined by its
holdings of gold and silver.
- Mercantilism

17. It is a government policy to encourage export goods and discourage sale of goods on the domestic market through
low-cost.

- Export Subsidy

18. It is typically levied on imports as they enter the

Country.

-Tariffs taxes or duties

19. It is Formed in 1947 by 23 countries to abolish quotas and reduce tariffs

- General Agreement on Tariffs and Trade (GATT)

20. It refers to trade between two countries of goods produced in the same industry

- Intraindustry trade

21. It is a modern, firm-based international trade theory that states that a nation’s or firm’s competitiveness in an
industry depends on the capacity of the industry and firm to innovate and upgrade

- Porter’s theory

22. Refers to the obstacles a new firm may face when trying to enter into an industry or new market.

- Barriers to entry

23. An organization who adopted the principles and trade agreements of GATT. And it has 140 current members

- World Trade Organization (WTO)

24. Also called as Factor Proportions Theory

- Heckscher-Ohlin Theory

25. A theory that explains intraindustry trade by stating that countries with the most similarities in factors will be more
likely to engage in trade between countries and intraindustry trade will be common.

- Country similarity theory

26. It is a theory by economists Paul Krugman and Kelvin Lancaster.

- Global strategic rivalry theory

27. It is a stage of a product life cycle in which the market factors and cost pressures dictate that almost all production
occur in developing countries.

- Decline

28. In this stage of a product life cycle the global demand begins to peak, production processes are relatively
standardized, and global price competition forces production site relocation to lower-cost developing countries.

- Maturity

29. Porter Believed that a sophisticated home market is critical to ensuring ongoing innovation.

- Local Market Demand Conditions

30. Give the meaning of ICSID - International Centre for the Settlement of Investment Disputes