Suppose Rice Can Be Produced in Country X at a Lower

question 112

Multiple Choice

Suppose rice can be produced in country X at a lower cost than in country Y, while tuna can be produced in country Y at a lower cost than in country X. International competition will:

• A) destroy the rice market in both countries.
• B) drive X to specialize in rice and Y to specialize in tuna.
• C) drive Y to specialize in rice and X to specialize in tuna.
• D) cause both X and Y to reject international specialization.

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Definitions:

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The organizational framework within which a business operates, determining its legal obligations, tax liabilities, and governance.

Record-keeping

The practice of maintaining and preserving documents, files, and information for future reference or compliance purposes.

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The mental and logical steps taken by individuals or organizations in making choices among various alternatives.

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Organizations that operate for purposes other than generating profit for owners or shareholders, focusing instead on furthering a social cause or shared goal.