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:

Price Premium

The extra amount consumers are willing to pay for a product due to perceived added value or quality.

Market Share

The percentage of total sales or revenue in an industry generated by a specific company, indicating its size and competitiveness in the market.

Dollar Sales

The total revenue generated from the sale of goods or services, measured in dollars.

Fixed-price Policy

A pricing strategy where a product or service is sold at a specific price that does not change in response to market fluctuations or customer negotiations.