In the Real World, We Don't Observe Countries Completely Specializing

question 103

Multiple Choice

In the real world, we don't observe countries completely specializing in the production of goods for which they have a comparative advantage.One reasons for this is

• A)comparative advantage works better in theory than in practice.
• B)because some countries also have an absolute advantage in the production of those goods.
• C)tastes for many traded goods are similar in many countries because of globalization.
• D)production of most goods involves increasing opportunity costs.

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Definitions:

Innovation

Generation of new and usable ideas; an important element of leadership performance. See creativity.

Usable Ideas

Pertains to concepts or proposals that can be effectively implemented or applied in practical scenarios.

Growth Through Coordination

Enhancing organizational performance and capabilities by effectively managing and harmonizing interrelated tasks and functions.

Organization Life

Refers to the various stages through which an organization progresses, including startup, growth, maturity, and potential renewal or decline.