Comparative Advantage Was Once the Cornerstone of International Trade Theory

question 25

True/False

Comparative advantage was once the cornerstone of international trade theory, but today it is archaic, simplistic, and irrelevant for explaining investment choices made by MNEs.

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Definitions:

Biased Language

Language that includes or implies unfair or unfounded prejudices or assumptions about individuals or groups.

Stereotypes

Oversimplified and generalized beliefs about a particular group of people, often leading to prejudgments and misconceptions.

Prejudices

Preconceived opinions or judgments about individuals or groups without sufficient knowledge or experience.

Age Bias

The unfair treatment or discrimination of individuals based on their age, typically in employment contexts.