According to the Principle of Comparative Advantage, If a Rich

question 128

Multiple Choice

According to the principle of comparative advantage, if a rich country trades with a poor country, then

• A)the rich country will lose and the poor country will benefit.
• B)the rich country will benefit and the poor country will lose.
• C)both countries will benefit.
• D)neither of the countries will benefit.

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Definitions:

Memorandum of Association

A legal document required for the formation of a company, outlining its constitution and permitted activities.

Non-Special Act Corporation

A corporation that operates under general corporate laws rather than being governed by laws enacted for a specific type of business or purpose.

Prospectus

A detailed document provided by a company to potential investors, outlining the company's financial health, operations, and investment risks.

Ontario Securities Commission

The regulatory body responsible for overseeing the capital markets in Ontario, Canada.