According to the Application,if Latvia Has No Absolute Advantage Relative

question 58

Multiple Choice

According to the Application,if Latvia has no absolute advantage relative to its neighboring European y countries,should it still trade with its neighbors?

• A)Yes,it should specialize in timber because it has comparative advantage in it.
• B)Yes,it should specialize in livestock because it has comparative advantage in it.
• C)Yes,it should specialize in grain because it has comparative advantage in it.
• D)No,it should not specialize in anything,and it should just trade with countries outside its neighboring European countries.

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Definitions:

Peripheral Capitalist Country

A term used in world-systems theory to describe countries that are not dominant in the global economy, often exploited for their resources by more developed countries.

Core Capitalist Country

A highly developed, industrialized country that is a central force in the global economic system.

Core Peripheral Country

A concept in world-systems theory describing countries that dominate in terms of advanced technology, financial resources, and economic influence, as opposed to peripheral countries that are dependent and exploited.

Geopolitically Important

Having significant influence or strategic value in global politics and international relations.