Darren, a Trade Analyst, Believes That Trade Is a Function

question 20

Multiple Choice

Darren, a trade analyst, believes that trade is a function of a specific company's strategic initiatives and not country-level factors, production factors, or even industry characteristics. Darren's belief reflects the _____.

• A) theory of absolute advantage
• B) theory of comparative advantage
• C) theory of economies of scale
• D) theory of the international product life cycle

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Definitions:

Income

refers to money received, especially on a regular basis, for work or through investments.

Pizza

A popular dish of Italian origin, consisting of a round, flattened base of leavened wheat-based dough topped with tomatoes, cheese, and various other ingredients, baked at a high temperature.

Books

Bound printed works consisting of written or illustrated pages, typically used for reading or study.

Weak Axiom

A concept in consumer theory that assumes if a consumer prefers a bundle A over bundle B when prices are unchanged, they will not prefer B over A if the price of A decreases and B remains the same or increases.