An Example of an Acquired Comparative Advantage Is

question 56

Multiple Choice

An example of an acquired comparative advantage is

• A) the United States producing more agricultural products than other countries because land is more abundant in the United States than in other countries.
• B) United States consumers buying television sets produced in Japan because Japanese companies have a reputation for producing a higher-quality TV than those produced in the United States.
• C) United States companies selling to other countries chemical products that cannot be sold in the United States.
• D) the United States purchasing coconuts from other countries, because they cannot be produced in the United States.

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Definitions:

Political Risk

The risk of losing money due to changes in a country's political landscape or government policies that negatively affect investments.

International Diversification

The strategy of spreading investment risk by purchasing assets in various countries, aiming to reduce overall investment risk.

International Financial Management

The discipline concerned with managing financial resources in a global market, including investment, financing strategies, and risk management across borders.

Cultural Heritages

The legacy of physical artifacts and intangible attributes of a group or society that are inherited from past generations, maintained in the present, and bestowed for the benefit of future generations.