Currency depreciation: Due to free floating of foreign exchange rate at foreign exchange rate market, a decrease in the value of the national currency compared to a foreign currency refers to currency depreciation.

Digital economy affects the international trade via new instruments. These new instruments have the potential of altering not only the way of trading and the profile of traders but also the commodities being traded. Main instruments of the digital economy which have started to affect the international trade are the Internet of Things, Artificial Intelligence, 3D Printing and Blockchain.

Laissez-faire means “leave it alone.” Usually it describes the economic policy of a government that stresses non-interference in business.

Mercantilism represented the dominant attitude toward international trade in the 17th and 18th centuries. Before the mercantilist period, it was difficult to talk about a common foreign trade in the world. The only exception to this situation silk road, which made Turkey a bridge between Europe and the Far East.

Paul Samuelson (1915-2009) was an American economist who wrote the largest-selling economics textbook ever in 1948, namely Economics: An Introductory
Analysis. He explained the principles of Keynesian economics and the way of economics thinking in his widelyreferred book. This book of his has done its nineteenth edition and has been sold in almost forty languages. Apart from this book, he has various studies devoted to economics. He was the first American economist who won the Nobel prize in economics (MIT Economics). The correct answer is " B ". 

Hereditary skill, local market for skill, introduction to new ideas and specialized suppliers are among the advantages that an industrial district can create for the firms that operate within the same industry. Rather than downsizing of subsidiaries, an industrial district can create growth of subsidiaries in that when firms are concentrated within a particular area, there will probably be new establishments in the form of subsidiaries; they will be the firms that supply materials or inputs to the industry. The correct answer is D.

Differences in Technology: Advantageous trade can occur between countries if the countries differ in their technological abilities to produce goods and services. Technology refers to the techniques used to turn resources- labour, capital, land into outputs -goods and services.

It is important to understand why trade takes place between countries. The five basic reasons why trade may take place are summarized as Differences in Technology, Differences in Resource Endowments, Differences in Demand, Existence of Economies of Scale in Production, Existence of Government Policies

Although the assumptions of the Stolper Samuelson Theorem seem logical, it constitutes the initial stage in explaining the distribution of income effects of international trade. The Theorem can be extended by taking into consideration the magnification effect. According to the magnification effect, an increase or a decrease in the price of a commodity has a greater effect in the same direction on the income of the factor used intensively in its production.

Absolute advantage occurs in two ways: Natural Advantage and Acquired Advantage (Daniels, 2004, p. 145).
a. Natural Advantage; A country’s advantage to other countries due to its climate, natural resources and labor ability. Ex.; Brazil-Coffee, Saudi Arabia-Petroleum, Turkey-Hazelnut
b. Acquired Advantage; A country’s advantage in terms of products. The advantage gained in product technology is that a country produces unique products that can be easily distinguished from its competitors. Ex.; Danish silver-cutlery sets, Kütahya ceramics and porcelain

Pattern of trade or in other words the composition of trade, is another key term used in international trade analysis. Pattern of trade refers to exported and imported commodities of each nation. In conjunction with the growth of world economy, pattern of trade has also changed, reflecting the ongoing structural transformation. The correct answer is "C".

Product Cycle Model rests on the recognition of dynamic changes that affect the manufactured commodities. The correct answer is " A ".

Due to free floating of foreign exchange rate at foreign exchange rate market, a decrease in the value of the national currency compared to a foreign currency refers to currency depreciation. The correct answer is "D".

Countries usually resort to trade restrictions with various aims. Among them, most referred aims are to protect the domestic consumers, to collect revenue to the treasury, to adjust balance of payments, to implement infant- industry argument and to serve for diplomatic relations. The first two aims, namely to protect the domestic consumers and to collect revenue to the treasury, are referred as traditional aims of trade restrictions.

The notion of reciprocal demand was presented by John Stuart Mill, but the first
complete treatment is to be found in Marshall.

International trade refers to the real side of international economics based on the physical movement of goods or services. Therefore, the correct option is A.

Smith, Ricardo and the following early international trade economists assumed that each trading country would have its own production conditions, its own climate, its own geography and these differences between countries would lead to the differences in productivity. However, the economists of the twentieth century have extended the scope of the differences in productivity. The first studies in this respect are the models of the two Swedish economists, namely Eli Heckscher and Bertil Ohlin.

According to the Figure 1.2, exports of manufactured goods constituted the biggest share within the total merchandise exports in 2017 with a percentage of 70.

Production Possibility Frontier-PPF is a curve that shows the alternative combinations of the two commodities that an economy can produce by fully utilizing all of its resources.

Offer curve: An offer curve gives the nation’s offer of quantity of exports and imports. In this respect, it demonstrates the nation’s supply (exports) and demand (imports) offers.