The Ricardian Model Attributes the Gains from Trade Associated with the Principle

question 36

Multiple Choice

The Ricardian model attributes the gains from trade associated with the principle of comparative advantage result to

• A) differences in technology.
• B) differences in preferences.
• C) differences in labor productivity.
• D) differences in resources.
• E) gravity relationships among countries.

---

Definitions:

Raise Capital

The process of securing funds or resources necessary for business operations, expansion, or investment through various means such as issuing stock or obtaining loans.

Form Of Business Organization

The legal structure adopted by a business, such as sole proprietorship, partnership, corporation, or limited liability company (LLC).

Corporation

A legal entity owned by shareholders, with rights and responsibilities separate from those of its owners, and capable of engaging in transactions, owning assets, and being liable for debts.

Working Capital Management

The process of managing a company's short-term assets and liabilities to ensure it has sufficient liquidity to run its day-to-day operations.