If China Has an Absolute Advantage Over Canada in Producing

question 24

Multiple Choice

If China has an absolute advantage over Canada in producing both rice and tires,then

• A)China should produce both rice and tire and Canada should produce both rice and tires
• B)there are no benefits possible to China from specialization
• C)Canada should produce tires and China should produce rice
• D)China should produce tires and Canada should produce rice
• E)more information is needed to tell whether China or Canada should specialize

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Definitions:

Create Invoice

The process of generating a document that itemizes and records a transaction between a seller and a buyer.

Purchase Order

A formal document issued by a buyer to a seller, detailing the products or services ordered at agreed-upon prices.

Sales Cycle

The process that companies follow from the initial contact with a potential customer to the closing of a sale, including steps such as prospecting, communicating, negotiating, and fulfilling orders.

Merchandising Company

A business entity that purchases goods in large quantities from manufacturers or wholesalers and then sells them in smaller quantities to consumers.