Which of the Following Theories States That in Those Industries

question 65

Multiple Choice

Which of the following theories states that in those industries where the output required to attain economies of scale represents a significant proportion of total world demand, the global market may be able to support only a small number of enterprises?

• A) Heckscher-Ohlin
• B) comparative advantage
• C) product life-cycle
• D) new trade
• E) absolute advantage

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Definitions:

Common Stock Split

A division of a company's existing shares into multiple ones to boost the liquidity of the shares, making them more affordable to small investors without altering the shareholder's equity.

Return on Equity

A financial ratio calculated by dividing net income by shareholder equity, used to measure the profitability of a company in generating profit from its equity investments.

Debt-to-Equity Ratio

This ratio measures the mix of shareholders' equity to debt in financing a company's assets.

Dividend Yield

A fiscal metric indicating the annual dividend payout by a company compared to its share price.