Why Is a Small Country More Likely to Gain from International

question 71

Multiple Choice

Why is a small country more likely to gain from international trade than a large country?

• A) Because autarkic relative prices in a small country are likely to be quite different from the world relative prices.
• B) Because a small country,unlike a large country,does not have the resources it needs to be self-sufficient.
• C) Because small countries tend to be specialized in their production,while large countries tend to be diversified.
• D) Because a small country is less likely to encounter decreasing returns to scale than is a large country.

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Definitions:

Global Network Design Decisions

Strategic decisions involving the configuration and management of a supply chain on a global scale, focusing on locations, transportation modes, and logistics infrastructure.

Available Infrastructure

The existing facilities and systems serving a country, city, or area, including transportation and communication systems, power plants, and schools.

Skill Needs

The specific abilities and expertise required for performing certain tasks or jobs effectively.

Response Time

The amount of time it takes to react to a request or stimulus, often used in the context of customer service or computer processing.