If Sierra Leone Has a Comparative Advantage in the Production

question 121

Multiple Choice

If Sierra Leone has a comparative advantage in the production of coffee,and its previously closed economy is opened to trade coffee for imported steel,Sierra Leone's

• A) steel industry will benefit at the expense of its steel consumers.
• B) steel industry will benefit at the expense of its coffee industry.
• C) steel consumers benefit,as will the nation's steel producers.
• D) coffee producers will benefit and as will the nation's coffee drinkers.
• E) steel consumers and coffee producers will benefit.

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Definitions:

External Forces

Events, conditions, or factors outside an organization that can affect its performance and operational success.

Touch Labour

Labor directly involved in the manufacturing or assembly of products, as opposed to indirect labor roles such as supervision or management.

Knowledge Workers

Individuals whose primary job involves the creation, manipulation, and management of information.

Downsizing

Planned elimination of jobs