Which Kind of State Is LEAST Likely to Benefit from Trade

question 62

Multiple Choice

Which kind of state is LEAST likely to benefit from trade?

• A)A state that has a comparative advantage at producing a few goods.
• B)A state that has a comparative advantage at producing one good.
• C)A state that has powerful business interests that produce goods that are more expensive than the global price.
• D)A state that has powerful business interests that produce goods that are cheaper than the global price.
• E)A state that can produce everything it wants to consume and does it more cheaply than the other alternatives.

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Definitions:

Cash Receipts

Money received by a business, recorded in its financial statements, typically from transactions such as sales or services rendered.

Cash Sales

Transactions where payment is made in cash (or equivalent) at the time of sale, with no delay in payment.

Internal Control

Processes and procedures implemented by an organization to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Cash Remittances

Money transfers from one party to another, often sent by individuals working abroad to their family back home.