Suppose England Has a Comparative Advantage Over the United States

question 122

Multiple Choice

Suppose England has a comparative advantage over the United States at producing tea. If this is true, then:

• A) England should produce more tea than it wants and sell the rest to the United States.
• B) England should produce a small amount of tea and buy the rest of the tea it wants from the United States.
• C) England should buy all of the tea it wants from the United States.
• D) the United States has nothing to gain from buying tea produced by England.

---

Definitions:

Organizational Decision Making

The process by which decisions are made within an organization, involving the selection of courses of action among several alternatives to achieve objectives.

Intangibles

Non-physical assets that cannot be easily quantified but have value, such as intellectual property, goodwill, and brand reputation.

Customer Goodwill

Refers to the favorable reputation a business gains due to positive customer experiences and is seen as an intangible asset.

Outsourcing

The practice of having certain job functions or tasks performed by external entities or individuals, typically to reduce costs or improve efficiency.