The Factor Endowment Theory Suggests That

question 5

Multiple Choice

The factor endowment theory suggests that:

• A)Resources are the foundation of firm's competitive advantages
• B)National resource endowments are the foundation for comparative advantages in international trade
• C)Many factors contribute to explaining the emergence of comparative advantages
• D)Scarce resources are the foundation for comparative trade advantages

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Definitions:

Standardized College Entrance Exam

A test administered to prospective college students, designed to assess their readiness for college-level work and often used in admissions decisions.

Rank Correlation Coefficient

A statistic that measures the degree of association between two ranked variables, assessing the strength and direction of their relationship.

Population Spearman Correlation

A measure of the strength and direction of the monotonic relationship between paired data in a population using ranked values.

Sample Statistic

A numerical measure that describes an aspect of a sample taken from a population, such as the mean or variance.