Which of the following is a flaw associated with mercantilism? Mercantilists view trade as a zero-sum game.

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 …

New trade theory stresses that in some cases countries specialize in the production and export of particular products not because of underlying differences in factor endowments, but because in certain industries the world market can support only a limited number of firms.

Eli Heckscher

Operating with these assumptions, the factor proportions theory states that a country should specialize in the production and export of those products that make use of its relatively abundant factor. A country that is relatively labor abundant should specialize in the production of relatively labor intensive goods.

The factor endowment theory holds that countries are likely to be abundant in different types of resources. If a country has a comparative advantage in a good that uses the factor with which it is heavily endowed, it should focus it’s production on that good.

The Heckscher-Ohlin (factor-endowment) theory emphasizes factor endowments as the basis for trade, while Ricardian theory stresses the role of labor productivity. The factor-endowment theory demonstrates how trade affects the distribution of income within trading partners.

Bertil Ohlin

1 : the act or process of endowing. 2 : something that is endowed specifically : the part of an institution’s income derived from donations. 3 : natural capacity, power, or ability a person of great intellectual endowment.

A factor endowment, in economics, is commonly understood to be the amount of land, labor, capital, and entrepreneurship that a country possesses and can exploit for manufacturing. Countries with a large endowment of resources tend to be more prosperous than those with a small endowment if all other things are equal.

The factor endowment theory of international trade contains three messages: First, each country will export those goods in which its abundant factors have comparative advantages; second, a country’s abundant factors gain from trade and its scarce factors lose; and, third, such factor endowment trade tends to bring …

An endowment fund is an investment fund established by a foundation that makes consistent withdrawals from invested capital. The capital or money in endowment funds is often used by universities, nonprofit organizations, churches, and hospitals.

The Financial Accounting Standards Board (FASB) has identified three types of endowments:

• True endowment (also called Permanent Endowment). The UPMIFA definition of endowment describes true endowment in most states.
• Quasi-endowment (also known as Funds Functioning as Endowment—FFE).
• Term endowment.

It is less common for a church to have endowment funds, although it is not unheard of. Not everyone favors a church having endowment funds. Some feel that any funds in possession of the church should be spent on a timely basis to further the mission of the church today, not for some future time.

An endowment policy regular savings plan might be beneficial for you if you: want to save for a particular event or goal over the long term, usually at least ten years. understand that the value of your investment can go down as well as up and you might get back less than you invested.

The gains or profits made on non-qualifying policies are often referred to as chargeable gains and they are subject to income tax rather than capital gains tax. For example; if the amount paid out on maturity exceeds the premiums paid, the gain is taxable.

University endowments are comprised of money or other financial assets that are donated to academic institutions. Charitable donations are the primary source of funds for endowments. Endowment funds support the teaching, research, and public service missions of colleges and universities.

The 100 Richest Universities in North America

1. Harvard University — $38.3 Billion.
2. The University of Texas System — $30.8 Billion.
3. Yale University — $29.3 Billion.
4. Stanford University — $26.4 Billion.
5. Princeton University — $25.9 Billion.
6. Massachusetts Institute of Technology (MIT) — $16.5 Billion.

Public university endowments are relatively modest when considering the student populations of these institutions. In most states, the largest university in terms of number of students is a public institution. Consideration of endowment size relative to student enrollment at public universities is notable context.