Assume That Only Two Countries, a and B, Exist

question 44

Multiple Choice

Assume that only two countries, A and B, exist.

-Refer to the table above. If you are told that Country B is very much richer than Country A, then the correct answer is

• A) country B will export good S.
• B) country A will export good S.
• C) both countries will export good S.
• D) trade will not occur between these two countries.
• E) both countries will import good S.

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Definitions:

Global Strategy

A plan developed by an organization to operate and compete in international markets.

Whole World

An expression referring to the entire planet Earth and all of its inhabitants and locations.

Direct Investment

The purchase or acquisition of a controlling interest in foreign assets, businesses, or real estate, typically involving a significant level of influence or management.