The theory of mercantilism
Which theory asserts that country should simultaneously encourage exports and discourage imports?
Propagated in the sixteenth and seventeenth centuries, mercantilism advocated that countries should simultaneously encourage exports and discourage imports. Although mercantilism is an old and largely discredited doctrine, its echoes remain in modern political debate and in the trade policies of many countries.
Which of the following advantages is most likely to be enjoyed by a company as a part of the first-mover advantages quizlet?
Which of the following advantages is most likely to be enjoyed by a company as a part of the first-mover advantages? Ability to capture scale economies ahead of later entrants . The Republic of Marunia believes that it is in its best interests to maintain a trade surplus, to export more than it imports.
Which strategy is in a country’s best interest according to the main tenet of mercantilism?
The main tenet of mercantilism was that it was in a country’s best interests to maintain a trade surplus, to export more than it imported . By doing so, a country would accumulate gold and silver and, consequently, increase its national wealth, prestige, and power.
Which of the following advantages is most likely to be enjoyed by a company as a part of the first-mover advantages?
The first-mover advantage enables a company to establish strong brand recognition and product/service loyalty before other entrants to the market .
Which theory asserts that countries should?
Mercantilism is the term that was popularized by Adam Smith, Father of Economics, in his book, The Wealth of Nations. Western European economic policies were greatly dominated by this theory. The theory of mercantilism holds that countries should encourage export and discourage import.
What supports the idea that countries should export more than what they import?
Mercantilism supports the idea that countries should export more than what they import.
Which of the following is one of the four factors included in Porter’s Diamond Group of answer choices?
The four points represent four interrelated determinants that Porter theorizes as the deciding factors of national comparative economic advantage. These four factors are firm strategy, structure and rivalry; related supporting industries; demand conditions; and factor conditions .
What does the Heckscher Ohlin theory explain?
The Heckscher-Ohlin model is an economic theory that proposes that countries export what they can most efficiently and plentifully produce . ... The model emphasizes the export of goods requiring factors of production that a country has in abundance.
What are three sources of economies of scale?
Common sources of economies of scale are purchasing (bulk buying of materials through long-term contracts), managerial (increasing the specialization of managers), financial (obtaining lower-interest charges when borrowing from banks and having access to a greater range of financial instruments) , marketing (spreading ...
Which country has an absolute advantage in producing timber?
To calculate absolute advantage, look at the larger of the numbers for each product. One worker in Canada can produce more lumber (40 tons versus 30 tons), so Canada has the absolute advantage in lumber.
What country has an absolute advantage?
Examples of absolute advantage
China, Thailand, and Vietnam , on the other hand, produce and export low-cost manufactured goods. These three countries have an absolute advantage because of their considerably lower unit labor costs.
Which of the following is the main principle of mercantilism?
The underlying principles of mercantilism included (1) the belief that the amount of wealth in the world was relatively static ; (2) the belief that a country’s wealth could best be judged by the amount of precious metals or bullion it possessed; (3) the need to encourage exports over imports as a means for obtaining a ...
What are the first mover advantages and disadvantages?
The advantages of first movers include time to develop economies of scale—cost-efficient ways of producing or delivering a product . The disadvantages of first movers include the risk of products being copied or improved upon by the competition. Amazon and eBay are examples of companies that enjoy first-mover status.
Is Netflix a first mover?
A good example of first-mover advantage involves Netflix .
Who got the first-mover advantage?
One possible explanation for Sony’s success is that its strong brand name, substantial financial resources, and excellent marketing skills allowed it to make the most of its first-mover status. But Xerox, too, had a great brand name, deep pockets, and many valuable skills.
