The Idea of Dynamic Comparative Advantage Is the Basis for Which

question 44

Multiple Choice

The idea of dynamic comparative advantage is the basis for which of the following arguments for protection from foreign competition?

• A)the cheap foreign labour argument
• B)the infant-industry argument
• C)the dumping argument
• D)the saves jobs argument
• E)the prevents rich countries from exploiting developing countries argument

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Definitions:

Investment Center

A business unit within a company that is responsible for its own revenues, expenses, and asset investments, with its performance measured by its ability to generate income relative to its assets.

Minimum Required Return

The lowest acceptable return on an investment, based on risk tolerance and financial goals.

Residual Income

The income that exceeds the minimum required return on investment or capital employed; often used as a performance measure.

Return On Investment

A measure of the profitability of an investment, calculated as the net profit from the investment divided by its initial cost.