What Should a Country Do If It Has a Comparative

question 22

Multiple Choice

What should a country do if it has a comparative advantage in a product?

• A) It should import that product.
• B) It should export that product.
• C) It should keep the product for domestic use since it is relatively inexpensive to produce.
• D) It should lower the costs of production until realizing an absolute advantage.

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Definitions:

Net Margin

A financial metric that measures the percentage of net income to revenue, indicating the profitability of a company after all expenses.

ISO Certification

A seal of approval from a third party body that a company runs to one of the international standards developed and published by the International Organization for Standardization.

Regulatory Requirements

Legal obligations that organizations must comply with, which are typically set forth by government bodies or industry regulators.

Risk Management

involves identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize, monitor, and control the impact of unforeseen events.