NPTEL International Trade Assignment 2 Answers 2022

What are the extreme values of the Revealed Comparative Advantage index?
0, infinity
0, 1
-1, 1
minus infinity, plus infinity

ans -B

1 point
In which country, Mercantilism did prevail?
Spain
France
England
Holland
All of the above

ans -A,B

1 point
Mercantilism is associated with the rise of the “Nation state.”
true
false

ans – A

1 point
Which is not the proposition of Mercantilism?
Promotion of National wealth and power
Importance of trade surpluses
Encourage imports and discourage domestic production and exports
Trade surplus leads to a net gold inflow, and thereby to greater national wealth and power

ans – B

1 point
which are the classical trade theories?
Porter’s Model
Absolute Cost Advantage Model
Comparative Cost Advantage Model
Heckscher and Ohlin Model

ans – C

1 point
A Country is said to have a revealed comparative advantage if the value is
greater than -1, less than 0.5
greater than 0.5, less than 0
greater than 0, less than 1
greater than 1

ans – D

1 point
Which is not correct?
RCAij = (Xij/Xwj) / (Xi/Xw)
RSCAij = (RCAij – 1) / (RCAij + 1)
TBIij = (Xij – Mij) / (Xij + Mij)
RSCAij = (TBIij – 1) / (TBIij + 1)

ans – B

1 point
According to the theory of comparative advantage, which of the following is not a reason why countries trade?
Comparative advantage.
Costs are higher in one country than in another.
Exports give a country a political advantage over other countries that export less
The productivity of labor differs across countries and industries.

ans – C

1 point
If the terms of trade of a nation are 3.5 in a two-nation world, those of the trade partner are:
2/7
7/2
1/7
3/7

ans – D

1 point
If with one hour of labor time nation A can produce either 3X or 3Y while nation B can produce either 1X or 3Y (and labor is the only input):
nation A has a comparative advantage in commodity X
nation A has a comparative disadvantage in commodity X
nation B has a comparative disadvantage in commodity Y
nation A has a comparative advantage in neither commodity07:55 PM

ans – A