According to the Factor-Endowment Theory, International Specialization and Trade Cause

question 54

True/False

According to the factor-endowment theory, international specialization and trade cause a nation's cheap resource to become cheaper and a nation's expensive resource to become more expensive.

---

Definitions:

Credit Policies

The guidelines that a company follows to determine credit limits, terms, and conditions for its customers.

Working Capital Investment

Funds invested in a company's short-term assets, like inventory and accounts receivable, which are necessary for its day-to-day operations.

Accounts Receivable

Amounts owed to a business by customers for goods or services that have been delivered but not yet paid for.

Inventory

The total amount of goods and materials held in stock by a business, part of the company's current assets.