The Principle of Comparative Advantage States That

question 40

Multiple Choice

The principle of comparative advantage states that

• A) whoever has a comparative advantage in producing a good or service also has the absolute advantage
• B) whoever has an absolute advantage in producing a good or service also has the comparative advantage
• C) whoever can produce a good or service using fewer resources than another individual has the comparative advantage
• D) total production of every good or service can be greater if individuals specialize according to their comparative advantage
• E) comparative advantage is maximized if each individual specializes according to his or her absolute advantage

Comprehend the concept of vertical integration and its strategic advantages for business expansion and control over the supply chain.

Understand the strategic value of networks and network organizations in specialization and information diffusion.

Define modular organization and describe its benefits and downsides.

Identify strategic alliances and their role in achieving competitive advantage and strategic goals.

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Definitions:

Colour

A characteristic of visual perception described through categories such as hue, saturation, and brightness, resulting from the way an object interacts with light.

Wavelength

The distance between successive crests of a wave, especially points in a sound wave or electromagnetic wave, a key characteristic in understanding wave properties.

Triglycerides

A type of fat found in the blood that the body uses for energy.

Low-Density Lipoprotein

Often referred to as "bad" cholesterol, it is a type of lipoprotein that transports cholesterol to cells throughout the body, which can lead to plaque buildup in arteries.