If Norwegian Workers Are More Productive Than Albanian Workers,then Trade

question 138

Multiple Choice

If Norwegian workers are more productive than Albanian workers,then trade between Norway and Albania

• A)cannot take place because Norwegian goods and services will be less expensive than Albanian goods and services.
• B)will take place so long as each country has a comparative advantage in a good or service that buyers in the other country want.
• C)cannot take place until Albanian workers become more productive.
• D)can take place only if Albania has an absolute advantage in producing a good or service Norwegian buyers want.

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Definitions:

Downstream Activity

Refers to the later stages in the supply chain, typically involving the distribution, sale, and customer service aspects of a business.

FedEx

A multinational delivery services company known for its overnight shipping service and pioneering a system that could track packages and provide real-time updates on package location.

UPS

Uninterruptible Power Supply, a device that provides emergency power to a load when the input power source fails.

Material Flows

The movement of raw materials, components, and finished products through production processes to delivery to the end user.