A Country Has a Comparative Advantage in a Product If

question 164

Short Answer

A country has a comparative advantage in a product if the world price is _____ than that country's domestic price without trade.

Understand the basic concepts and differences between monopolies and competitive markets.

Explain the role and impact of supply curves in pure competition and monopoly.

Interpret the effects of monopoly on pricing and economic profits.

Discuss personalized pricing and the role of Big Data in online retail.

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Definitions:

Payback Period

The number of years it takes a firm to recover its project investment. Payback does not capture a project’s entire cash flow stream and is thus not the preferred evaluation method. Note, however, that the payback does measure a project’s liquidity, and hence many firms use it as a risk measure.

Capital Budget Expenditures

Outlays of funds by a company for major investments or acquisitions intended to drive future growth.

Compliance

Adherence to laws, regulations, guidelines, and specifications relevant to its business processes.

Environmental Issues

Concerns related to the preservation of natural resources and the minimization of pollution and waste.