D2:One of the main assumptions of the extended Specific Factor Model regarding international labor mobility is that:

A: workers' tastes are similar and locational decisions are based on wage differentials.

B: labour is a immobile factor of production.

C: differences in taste determine whether moving or not

. D: differences in taste determine where to locate.

D3:In a two-sectors (x1 and x2) Ricardian economy, with L=150 and aL1=10 and aL2=5, consumer tastes are represented by the proportion x1 = x2. If p 1 /p 2=1/2 is the international terms of trade, how much x2 would the country export ?

A: 10.

B: 750.

C: 75.

D: 1000.

D8:Based on the numerator of the Gravity Model (in levels), Italy will export more to

A: Island.

B: Norway.

C: the US.

D: the United Kingdom

D9:FDI:

A: mainly originated from emerging economies.

B: mainly originated from developing countries.

C: mainly originated from developed countries.

D: mainly originatedfrom transition economies.

D10:Which one of the following statements apply to the concept of openness?

A: It is when a Country receives a lot of FDI.

B: A country is Open when its policies are inclusive of differences.

C: Openness indicates how much a country is connected to others.

D: Openness indicates how much of the value of domestic production depends on foreign transactions.

D11:The Gravity model states that it exists:

A: an inverse relation between the volume of international trade and the distance between the countries involved in international trade.

B: a negative relation between international trade flows and the economic dimension of the countries.

C: a positive relation between international trade flows and the distance between countries.

D: a positive relation between international trade flows and transportation costs.