All of the Following Are True EXCEPT

question 51

Multiple Choice

All of the following are true EXCEPT

• A)trade between two nations reduces their opportunity costs.
• B)trade makes nations dependent on each other.
• C)trade between nations will not benefit all citizens.
• D)the principle of comparative advantage does not apply to countries with extremely limited resources.
• E)specialization according to comparative advantage can make both countries better off.

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Definitions:

Drop Shipment

A logistics method where the seller does not keep goods in stock but instead directly transfers customer orders and shipment details to a third party, who then ships the goods directly to the customer.

Cross-docking

A logistics practice where incoming shipments are directly transferred from inbound to outbound vehicles, minimizing storage time and reducing handling costs.

Blanket Order

A long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship.

Keiretsu

A set of companies with interlocking business relationships and shareholdings in Japan, forming a tight-knit alliance to work toward mutual success.