Which of the Following Would NOT Be Considered a Feature

question 7

Multiple Choice

Which of the following would NOT be considered a feature of comparative advantage?

• A) Exporters in Country A sell goods or services to unrelated importers in Country B.
• B) Firms in Country A specialize in making products that can be produced relatively efficiently, given County A's endowment of factors of production. Firms in Country B do likewise thus maximizing the combined output of Countries A and B.
• C) Trade exists between Counties A and B because of specialized factors of production that cannot be moved among countries.
• D) All of the above are features of comparative advantage.

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Definitions:

Functional Currency

The currency of the primary economic environment in which an entity operates and generates and spends cash.

Exchange Rate

The price of one country's currency expressed in another country's currency.

Amortization

The process of gradually writing off the initial cost of an intangible asset over a period of time.