Which Theory of International Trade Explains That Success in International

question 88

Multiple Choice

Which theory of international trade explains that success in international trade comes from the interaction of four country- and firm-specific elements?

• A) national competitive advantage
• B) country similarity
• C) absolute advantage
• D) relative factor endowments

---

Definitions:

Credit

An accounting entry that increases liabilities or equity or decreases an asset or expense account.

Acquisition Method

An accounting procedure for recording the purchase of one company by another, focusing on fair value assessments of acquired assets and liabilities.

Subsidiary Shares

Subsidiary shares are equity shares held by a parent company in a subsidiary company, giving it ownership interest.

Selling Price

The amount of money a buyer pays to purchase an item or service from a seller.