Antonio is an artisan . The country he lives in allows him to sell his goods to people in other countries without any quotas or tariffs . Likewise , he is free to buy materials he needs for his craft from other countries without any restrictions . The country in which Antonio lives practices

1. Fair trade
2. Socialism
3. Free trade
4. Mercantilism

Country A specializes in the production of copper and produces it more efficiently than any other country . It buys wheat , which it produces less efficiently than copper , from Country B , even though it produces wheat more efficiently than Country B. Which theory of international trade supports Country A's decision to buy wheat from Country B ?

1. Ricardo's theory of comparative advantage
2. Mercantilism
3. Adam Smith's theory of absolute advantage
4. Vernon's product life-cycle theory

Professor Nelson believes that early in the life cycle of a U.S. product , demand in other advanced countries is limited to high - income groups . Consequently , it is seldom worthwhile for firms in those countries to start producing the product . This view conforms to

1. The product of life-cycle theory
2. Ricardo's theory
3. The theory of absolute advantage
4. The theory of competitive advantage

Suppose Australia exports lithium - ion batteries to almost every country in the world except Japan because Japan's customs inspectors insist on testing every battery to ensure it works . This would be an example of which trade barrier ?

1. Export restraint
2. Administrative trade policies
3. Local content requirement
4. Ad valorem