When a Nation Has a Comparative Advantage in the Production

question 10

Multiple Choice

When a nation has a comparative advantage in the production of a particular good,

• A) the opportunity cost of producing that good is higher than that of other goods.
• B) the nation can gain from trade.
• C) the comparative advantage encourages self- sufficiency.
• D) the nation tends to avoid specialization.

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Definitions:

Network Organization

A form of organization characterized by a less hierarchical structure, with nodes of operation connected in ways that are more flexible and adaptable.

Strategic Alliance

is a cooperative agreement between two or more entities to pursue a set of agreed objectives while remaining independent entities.

Strategic Alliance

Strategic alliance is a formal agreement between two or more parties to pursue a set of agreed upon objectives while remaining independent organizations.

Research Consortium

A group or association of institutions or organizations that collaborate together to conduct research on specific areas of interest.