If Country X Has Higher Labor Productivity in the Production

question 43

Multiple Choice

If country X has higher labor productivity in the production of umbrellas than the rest of the world, we would say that country X has a(n) _____ in the production of umbrellas.

• A)comparative advantage
• B)absolute advantage
• C)absolute disadvantage
• D)comparative disadvantage

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Definitions:

Trade Deficits

A scenario where the value of a nation's imports surpasses the value of its exports within a specified period, indicating a net outflow of domestic currency to foreign entities.

WTO

The World Trade Organization, an international body aimed at promoting and facilitating global trade and resolving trade disputes.

Globalization

The method through which companies or various organizations expand their influence globally or begin to function at an international level.

Exports

Commodities or services sent overseas for the objective of being sold or traded.