Production Driven by Worldwide Global Demand Can Be Concentrated Where

question 44

True/False

Production driven by worldwide global demand can be concentrated where it can best be accomplished,fixed resources can be allocated over larger production runs,and production runs in larger plants can be scheduled more inefficiently and can be more imprecisely estimated.

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Definitions:

Autarky

A situation in which a country does not trade with other countries.

Comparative Advantage

The advantage conferred on an individual or country in producing a good or service if the opportunity cost of producing the good or service is lower for that individual or country than for other producers.

Absolute Advantage

The advantage conferred on an individual or country in an activity if the individual or country can do it better than others. A country with an absolute advantage can produce more output per worker than other countries.

Ricardian Advantage

A theory in economics that suggests countries should specialize in producing and exporting goods in which they have a relative productivity advantage.