In the Context of International Trade, Which of the Following

question 126

Multiple Choice

In the context of international trade, which of the following statements is true of comparative advantage?

• A) It is the tendency of a country to choose goods that have a higher opportunity cost compared to other countries.
• B) As technology changes, nations may gain or lose comparative advantage in various industries.
• C) It is subjected to the industries in developing countries facing major trade barriers.
• D) Despite evolving workforces, developing countries maintain a static comparative advantage.

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Definitions:

Restrictive Endorsement

An endorsement on a check or other financial instrument limiting the way the funds can be used or restricting further endorsement.

Endorsed

Endorsed refers to the approval or support, often given formally or officially to signify agreement with or sanction of something.

Full Endorsement

A signature on the back of a negotiable instrument, such as a check, that specifies the person to whom the instrument is to be paid, transferring ownership.

Blank Endorsement

Blank Endorsement is a signature on a financial instrument, such as a check, without designating a payee, making it payable to the bearer.