Which of the Following Is a Potential Threat for a Country

question 12

Multiple Choice

Which of the following is a potential threat for a country like China whose strength lies in its abundant labour?

• A) Exploitation of comparative advantage.
• B) Rising exchange rate.
• C) Higher wages in other countries.
• D) Trade creation.

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Definitions:

Straight Line

In economics, often represents a simple linear relationship in models, such as the budget constraint in consumer theory.

Substitute Goods

Products or services that can be used in place of each other, affecting demand when the price of one changes.

Papayas

No real economic definition; presumably referring to the tropical fruit as a commodity in the context of trade, agriculture, or market pricing.

Grapefruit

A large, tart citrus fruit with a segmented, juicy interior, often eaten for breakfast or used in culinary recipes.