Which Theory of International Trade Explains That Success in International

question 88

Multiple Choice

Which theory of international trade explains that success in international trade comes from the interaction of four country- and firm-specific elements?

• A) national competitive advantage
• B) country similarity
• C) absolute advantage
• D) relative factor endowments

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operational costs, have been subtracted from its total revenue.

Cost of Goods Sold

Direct spending associated with producing the merchandise a company trades, including both materials and manpower costs.

Worksheet

A columnar device used by accountants to aid them in completing the accounting cycle—often just referred to as "spreadsheet." It is not a formal report.

Revenue

The total income received by a company from its normal business activities, before any expenses are subtracted.