A Country Is Deemed to Have a Comparative Advantage in a Product

question 56

Multiple Choice

A country is deemed to have a comparative advantage in a product if:

• A)the world price is lower than its domestic price
• B)the world price is higher than its domestic price
• C)the world price is equal to its domestic price
• D)none of the above

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Definitions:

Competitive Edge

An advantage a company has over its competitors, allowing it to generate greater sales or margins and retain more customers.

Regression Analysis

A statistical method used to model and analyze the relationship between a dependent variable and one or more independent variables.

Profitability

A measure of the efficiency and financial performance of a business, indicating the degree to which it generates profit compared to its revenue.

Location Analysis Techniques

A set of methods or models used to evaluate the best geographical location for a business or facility, taking into account factors like cost, accessibility, and market demand.