Which of the Following Statements About International Trade Is True

question 40

Multiple Choice

Which of the following statements about international trade is true?

• A)Potentially, a country can have absolute advantage in all goods.
• B)Potentially, a country can have relative advantage in all goods.
• C)After trade, countries tend to specialize in the production of those goods in which they enjoy absolute advantage.
• D)None of the above is true.

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Definitions:

Large Dividends

Significant payments made by a corporation to its shareholders, usually derived from the company's profits.

Small Dividends

Refers to dividend payments that are relatively small in amount, typically paid by companies with modest profits or those adopting conservative dividend policies.

Investors

Individuals or organizations that allocate capital with the expectation of receiving financial returns.

Stock Dividend

A payment made to shareholders in the form of additional shares rather than cash.