In the Context of International Trade, Which of the Following

question 126

Multiple Choice

In the context of international trade, which of the following statements is true of comparative advantage?

• A) It is the tendency of a country to choose goods that have a higher opportunity cost compared to other countries.
• B) As technology changes, nations may gain or lose comparative advantage in various industries.
• C) It is subjected to the industries in developing countries facing major trade barriers.
• D) Despite evolving workforces, developing countries maintain a static comparative advantage.

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Definitions:

Multidomestic Strategy

A strategy used by companies to tailor products and marketing strategies to suit local preferences and conditions.

Transnational Strategy

A corporate strategy that involves operating in multiple countries, combining global coordination to achieve efficiency with flexibility to adapt to local market conditions.

Autonomy to Adapt

The ability of an entity, such as an organization, to independently adjust or modify its functions and processes in response to environmental changes or internal demands.

Transnational Strategy

A business approach used by companies that operate across borders, combining global integration with local responsiveness.