The Principle of Comparative Advantage Explains How

question 134

Multiple Choice

The principle of comparative advantage explains how

• A)one nation can take advantage of another one through international trade.
• B)two nations may engage in mutually beneficial trade, even though one of them is more productive than the other.
• C)one individual can take advantage of another through international trade.
• D)some people are good at producing everything, while others have no comparative advantages.
• E)some nations end up with large trade surpluses.

Understand the implication of FOB shipping point and FOB destination terms on freight costs.

Record the journal entries for the sale of merchandise, including scenarios with sales tax.

Understand the benefits of purchase discounts and their calculation.

Differentiate between the chart of accounts for merchandising and service businesses.

---

Definitions:

High-Level Managers

Executives and other top-tier management personnel responsible for making strategic decisions and overseeing the operations of a company or organization.

Breach Of Fiduciary Duty

The failure of a person in a position of trust to act in the best interests of those they serve.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interests and possibly rights to dividends and voting in company matters.

Incorporators

Individuals or entities that participate in the process of legally forming a corporation by filing its initial documents with the relevant state.