When International Trade Is Based on the Concept of Comparative

question 49

Multiple Choice

When international trade is based on the concept of comparative advantage,then a country will specialize in producing goods that the country can produce ________.

• A) at a lower cost than other countries in the same time span
• B) at a higher price than other countries in the same time span
• C) more of than other countries in the same time span
• D) faster than other countries in the same time span

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for, often considered as an asset on the balance sheet.

Days' Sales Uncollected

A financial metric that measures the average number of days it takes for a company to collect payments from its credit sales.

Cash Receipts

The collection of money, including coins, notes, checks, and electronic transfers, received by a business during a given period.

Open Mail

The process or act of receiving and processing mail, not specific to financial or accounting terminology.