The Theory of Comparative Advantage

question 31

Multiple Choice

The theory of comparative advantage:

• A)helps to analyse the absolute advantages of countries involved.
• B)suggests that a country that does not have an absolute advantage should import everything.
• C)analyses the nature and the extent of specialisation undertaken by nations.
• D)suggests that a country specialise in producing goods or services for which it has a higher opportunity cost.

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Definitions:

Principal's Business

The central activities or operations that a principal or company is engaged in or the focus area of its business.

Nonemployee Agents

Individuals or entities that act on behalf of a company but are not classified as employees, often for specific tasks or functions.

Corporate Officers

High-ranking executives appointed to manage an organization or corporation, such as CEOs, CFOs, and COOs, responsible for its day-to-day operations.

Employees

Individuals who are hired by a business or organization to perform work in exchange for compensation.