Production Possibilities Data for Two Countries, Alpha and Beta, Which

question 86

Multiple Choice

Production possibilities data for two countries, Alpha and Beta, which have populations of equal size. Refer to the above data.Beta:

• A)should specialize in catching fish and trade with Alpha for chips.
• B)should specialize in producing chips and trade with Alpha for fish.
• C)will not realize gains from specialization and trade.
• D)will export both fish and chips to Alpha.

---

Definitions:

Modernization Theory

A theory suggesting that societies progress through similar stages of development towards becoming modern societies, characterized by industrialization, urbanization, and increased living standards.

Dependency Theory

A sociological theory proposing that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former.

Transnational Corporations

Business entities that operate in multiple countries, extending their operations beyond their country of origin through global networks of production and distribution.

Globalization

The process by which businesses, economies, cultures, and populations become interconnected and integrated due to advances in communication, transportation, and trade.