The Principle of Comparative Advantage Explains How

question 134

Multiple Choice

The principle of comparative advantage explains how

• A)one nation can take advantage of another one through international trade.
• B)two nations may engage in mutually beneficial trade, even though one of them is more productive than the other.
• C)one individual can take advantage of another through international trade.
• D)some people are good at producing everything, while others have no comparative advantages.
• E)some nations end up with large trade surpluses.

---

Definitions:

Wire Transfer

An electronic method of transferring funds directly from one person or entity's bank account to another's across financial institutions.

Integrative Negotiation

A negotiation approach in which the parties’ goals are not seen as mutually exclusive, but the focus is on both sides achieving their objectives.

Distributive Bargaining

A negotiation strategy that involves a fixed amount of resources to be divided between parties, often resulting in a win-lose scenario.

Accommodating

The willingness to adapt one's behavior or decisions to meet the needs or preferences of others, often seen as a strategy for conflict resolution.