The Absolute Advantage Theory of International Trade States That _

question 25

Multiple Choice

The absolute advantage theory of international trade states that _.

• A) companies should franchise their trademarks to avoid a nation-state's restrictions on foreign direct investment
• B) all licensing agreements should be subject to restrictions of the host country
• C) a country would contribute to global efficiency if it produced specialized products more efficiently than others did
• D) an individual nation should concentrate on exporting the goods that it can produce most efficiently

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Definitions:

Continuous Reinforcement

a method of learning where a behavior is reinforced (rewarded) every time it occurs, facilitating quick acquisition of the behavior.

Partial Reinforcement

A learning theory concept where reinforcement is given only a portion of the time a subject gives the desired response, which enhances the resilience of the response.

Continuous Reinforcement

A learning schedule in which every correct response is followed by a reward, facilitating faster learning.

Gradual Reinforcement

A process in operant conditioning where reinforcement is slowly introduced or varied to shape behavior.