Both the Theory of Comparative Advantage in Production and the H-O

question 48

Multiple Choice

Both the theory of comparative advantage in production and the H-O theory provide ______ as a basis for international trade.

• A) factor endowments
• B) trade surplus theory
• C) foreign direct investment
• D) managed trade theory
• E) trade deficit theory

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Definitions:

Reactants

Substances initially present in a chemical reaction that are consumed during the reaction to make products.

Products

The substances that result from a chemical reaction, found on the right side of a chemical equation.

Exergonic Reaction

A chemical reaction where energy is released to the surrounding environment, typically characterized by a negative Gibbs free energy.

Second Law

Typically refers to the Second Law of Thermodynamics, which states that the total entropy of an isolated system can never decrease over time, indicating a tendency towards disorder or equilibrium.