NPTEL International Trade Assignment 4 Answers 2022

which is the assumption of Krugman’s trade model?
Internal economies of scale
Monopolistic competition
Identical preferences
All of the above

ans – D
1 point
Intra-industry trade takes place:
in order to take advantage of economies of scale
because products are homogeneous
because perfect competition is the prevalent form of market organization
None of the above

ans –  C
1 point
India’s Vertical Intra-industry Trade (VIIT) dominates Horizontal Intra-Industry Trade (HIIT).
true
false

ans –  a
1 point
The product life cycle theory is related to:
factor endowment
labour productivity
technological gaps
all of the above

ans –  D
1 point
What is the shape of the production possibility curve if a nation has increasing returns to scale?
Concave to the origin
Convex to the origin
Inear
Any of the above

ans –  D
1 point
Two developed nations are most likely to engage in
intra-industry trade based on economies of scale
inter-industry trade based on economies of scale
intra-industry trade based on comparative advantage
inter-industry trade based on comparative advantage

ans –  C
1 point
The Grubel and Lloyd index measures the magnitude of a nation’s intra-industry trade.
true
false

ans –  B
1 point
The international trade involves majorly of:
intra-industry trade
differentiated products
monopolistic competition
all ofthe above

ans –  A
1 point
which measure is appropriate in case of intra-industry trade?
Grubel and Lloyd (1975) index
Bergstrand (1983)index
Balassa (1986) index
All of the above

ans –  C
1 point
what are the extreme values of GL index of Intra-Industry Trade?
0, 1
0, infinite
-1, +1
minus infinite, plus infinite