Match the following

List-I List-II (a) Accommodating capital flow (i) Creation of international reserve assets by the IMF and their allocation among member countries in order to improve international liquidity (b) Autonomous capital flow (ii)  Estimate of foreign exchange flow on account of either variations in the collection of related figures or unrecorded (c) SDR Allocation (iii) Inflow […]

Match the following

List-I List-II (a) Absolute cost advantage theory (i) The empirical evidence based on US export of labour intensive goods challenging the factor endowment theory (b) Comparative cost advantage theory (ii) A country having a direct cost advantage in the production of a product on account of greater efficiency (c) Factor Endowment Theory (iii) A country […]

Consider the following statements with regard for the “Theory of Absolute Cost Advantage”:

(i) Productive efficiency differed among different countries because of diversity in natural and acquired resources possessed by them. (ii) The difference in natural advantage manifests in varying climate, quality of land availability of minerals, water and other resources. (iii) The difference in acquired resources manifests in different levels of technology and skills available. Identify the […]