Which Trade Theory Suggests That Comparative Advantage Tends to Shift

question 70

Multiple Choice

Which trade theory suggests that comparative advantage tends to shift from one nation to another as a product matures?

• A) factor-price equalization theory
• B) factor-endowment theory
• C) product life cycle theory
• D) theory of comparative advantage

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Political and Economic System

The organized set of principles and structures that dictate how a society is governed and how its economic activities are conducted.

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The state of being equal, especially in status, rights, and opportunities.

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