According to the Smith, Ricardo, and Heckscher-Ohlin Theories, a Country's

question 98

Multiple Choice

According to the Smith, Ricardo, and Heckscher-Ohlin theories, a country's economy may gain if its citizens buy some products from other nations that could be produced in their home nation. What is the reasoning behind this idea?

• A) The natural resources of a country limit the types and quantities of items that can be produced.
• B) International trade is typically regulated by government forces that prevent a business from exporting.
• C) International trade allows a country to specialize in items that can be produced most efficiently in that country.
• D) First-mover advantages limit a country from producing every product that citizens need or want.
• E) Innovative products are typically produced in the home country, but high-demand products should be imported.

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Definitions:

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, often performing better on simpler or well-practiced tasks.

Implicit Attitudes

Implicit attitudes are unconscious beliefs or feelings towards objects, people, or situations.

Explicit

Stated clearly and in detail, leaving no room for confusion or doubt.

Prejudiced

Holding preconceived judgments or opinions about people or groups without sufficient knowledge or experience.