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Time management is very much important in IIT JAM. The eduncle test series for IIT JAM Mathematical Statistics helped me a lot in this portion. I am very thankful to the test series I bought from eduncle.
Nilanjan Bhowmick AIR 3, CSIR NET (Earth Science)
- UGC NET
- Management
Match the following constructs with underlying theories on dividend decisions:
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Eduncle Best Answer
Theory of Absolute Cost Advantage was given by Adam Smith.
Eli Heckscher and Bertil Ohlin the Swedish economists developed the theory of relative factor endowments.
Linder (1961) in his theory gave importance to demand side factors like similarity in income levels across nations and income distribution characteristics in determining pattern of trade. As per this theory, international trade takes place between those countries which have similar income levels and demand patterns.
Raymond Vernon (1966) has put forth the product life cycle hypothesis. His model is a generalized and extended form of the technological gap model. He states that as products mature both the location of sales and the optimal production location will change affecting the flow and direction of trade.