China Has a Comparative Advantage in Textiles and an Absolute

question 238

Multiple Choice

China has a comparative advantage in textiles and an absolute advantage in both textiles and radios. Japan has a comparative advantage in radios. According to this scenario

• A) Japan should import both radios and textiles.
• B) China should export both radios and textiles.
• C) China should export textiles and import radios.
• D) Japan should export textiles and import radios.

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Definitions:

Third Party Dispute Resolution

A process where an independent entity helps resolve a conflict or dispute between two other parties, often used in legal, commercial, and labor contexts.

Collective Bargaining

A process of negotiation between employees, through their representatives, and employers on the terms of employment, including wages, hours, and working conditions.

Arbitrator

A neutral third party chosen to resolve disputes between parties, who makes decisions that are usually binding.

Fact-finding

The process of gathering facts through research or investigation, often used in disputes to establish an objective basis for negotiations or decisions.