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:

Spending Variance

The difference between the actual and budgeted amount of spending, indicating over or under spending.

Total Expenses

The sum of all expenses incurred by a business during a specified period, including cost of goods sold, operating expenses, and other charges.

Spending Variance

The difference between the actual amount of money spent and the budgeted amount in a given period.

Occupancy Costs

Expenses related to occupying a space, including rent, utilities, and other facility-related costs.