The Principles of Comparative Advantage and Specialization Apply to Trade

question 124

True/False

The principles of comparative advantage and specialization apply to trade between countries.

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Definitions:

Self-Directed Teams

Are groups of employees who manage their workload and operations more independently than traditional work teams, often with a high degree of autonomy.

Divisionalized Structures

Divisionalized structures are organizational frameworks where the company is divided into distinct units, each with its own set of functions and responsibilities, aimed at addressing specific operational needs.

Functional Structures

An organizational design that groups employees based on their roles or functions, enhancing specialization and efficiency.

Economies of Scale

The cost advantage achieved when production becomes efficient, as the output increases, the per unit cost decreases.