The Comparative Advantage Theory Is Useful in Explaining _____________________ Between

question 121

Multiple Choice

The comparative advantage theory is useful in explaining _____________________ between countries that have very different factor endowments.

• A)cost advantages
• B)resource allocations
• C)promotional expenses
• D)intra-industry trade
• E)inter-industry trade

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Definitions:

Revenue Centre

A segment or area of a business responsible for generating sales and revenue, without direct responsibility for profit or cost.

Investment Centre

A business unit or division within an organization that is responsible for generating its own revenues and managing its own investments and expenses.

Profit Centre

A business unit or department within an organization that is responsible for generating its own revenue and profit.

Cost-Plus Transfer Price

A pricing method where the selling price of a product is determined by adding a specific markup to the product's cost.