According to the Factor Abundance Theory of Comparative Advantage, If

question 47

Multiple Choice

According to the factor abundance theory of comparative advantage, if a country has a long coastline relative to its area, it has a(n)

• A) comparative advantage in producing maritime products such as fish.
• B) comparative disadvantage in providing ocean-related tourist services.
• C) comparative advantage in producing timber and other land-based natural resources.
• D) absolute advantage in providing skilled seafarers to other maritime countries.
• E) vested interest in maintaining free and open access to trade routes, especially those routes that end or begin in the country.

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Definitions:

Semi-annually

Occurring or calculated twice a year, typically in the context of interest payments or dividends.

Coupon Rate

The yearly interest rate a bond issuer pays to its holders, usually shown as a percent of the bond's nominal value.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which is not related to its market value.

Moody's

A credit rating agency that evaluates the creditworthiness of borrowers, ranging from governments to private enterprises, and assigns ratings that reflect the risk of default.