In Which of the Following Cases Should the United States

question 19

Multiple Choice

In which of the following cases should the United States produce more noodles than it wants for its own use and trade some of those noodles to Italy in exchange for wine?

• A)Americans know less than Italians know about cooking noodles.
• B)The United States has an absolute advantage over Italy in producing noodles.
• C)Italy has a comparative advantage over the United States in producing wine.
• D)The opportunity cost of producing a gallon of wine is the same for Italy as it is for the United States.

Understand economic policy concerns discussed by the Organisation for Economic Co-operation and Development (OECD).

Understand the basic concepts and significance of international business.

Identify different strategies and structures of multinational corporations (MNCs).

Recognize the ethical, legal, and environmental concerns in international business.

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Definitions:

Psychologically Evolved Mechanism

Psychologically evolved mechanisms are innate aspects of the human mind that have developed over time to solve specific problems of survival or reproduction.

Social Dominance

A theoretical and observational concept regarding the hierarchical rank and ensuing behaviors that determine an individual's control or influence over resources within a social group.

Reproductive Success

The ability to pass on one's genes to the next generation effectively through offspring that survive to reproductive age.

Category Killer

A large retail chain that dominates a product category, often driving out smaller competitors.