Comparative Advantage Was Once the Cornerstone of International Trade Theory

question 25

True/False

Comparative advantage was once the cornerstone of international trade theory, but today it is archaic, simplistic, and irrelevant for explaining investment choices made by MNEs.

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Definitions:

Plants

Plants are multicellular organisms in the kingdom Plantae that primarily use photosynthesis to convert light energy into chemical energy.

Modern Agriculture

Refers to the current era's agricultural practices which include the use of technology, genetic modification, and advanced management practices to increase efficiency and productivity.

Synthetic Fertilizers

Man-made compounds applied to soil to supply one or more plant nutrients essential for the growth of plants.

Pesticides

Chemical agents used to kill or control pests, including insects, rodents, fungi, and weeds, in agricultural and residential settings.