The Concept of Comparative Advantage Implies That

question 37

Multiple Choice

The concept of comparative advantage implies that:

• A) there are winners and losers when people trade without specializing.
• B) people have to be self-sufficient.
• C) people can benefit from specializing and trading with each other.
• D) only those people who are productive benefit from trade.

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Definitions:

Divisionalized Structures

Divisionalized structures refer to organizational models in which operations are segmented into semi-autonomous divisions, each focusing on a particular product line, market sector, or geographical area.

Geographically-Based Structure

An organizational structure that assigns responsibilities based on geographical divisions or territories.

Matrix Structures

An organizational structure that creates project-based teams from different departments for more dynamic and flexible operations.

Divisional Structure

An organizational structure that groups departments based on similar products, services, customers, or geographic locations.