It Is Not Possible for One Country to Sell All

question 11

Multiple Choice

It is not possible for one country to sell all products more cheaply than other countries for any length of time because the

• A)importing countries will react by constructing severe trade barriers.
• B)exporting country will find its cost of production decreasing relative to the importing country.
• C)depreciation of the importing countries' currencies ensures that trade will flow in both directions.
• D)depreciation of the exporting country's currency will lead to trade in both directions.
• E)the principle of absolute advantage would then be violated.

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Definitions:

Third Restatement

The most recent revision or version of a restatement in law, which aims to rearticulate legal principles for clearer understanding and application.

Apparent Authority

A form of authority that an agent appears to have to a third party because of the behavior or statements of the principal, even if the actual authority was not granted.

Actual Notice

Knowledge of a fact acquired directly through firsthand experience or communication, not through inference or assumption.

Breach of Contract

The violation of a contractual obligation without valid legal excuse, which may result in legal consequences including the right to damages or enforcement of performance.