Based on Table 3

question 53

Multiple Choice

Based on Table 3.1,which country or countries has an absolute advantage and a comparative advantage in shoes?

• A)Mexico has an absolute and comparative advantage in shoes.
• B)The United States has an absolute and comparative advantage in shoes.
• C)The United States has a comparative advantage, and Mexico has an absolute advantage in shoes.
• D)Mexico has a comparative advantage, and the United States has an absolute advantage in shoes.

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Definitions:

Inventory Method

An inventory method is an accounting approach used to value and manage a company's stock of goods.

Lower Cost

A strategy or situation where expenses are reduced, often achieved through efficient operations, bulk purchasing, or other methods to decrease the cost base.

FIFO Inventory

An inventory valuation method that assumes the first items placed in inventory are the first sold, prioritizing older stock for cost of goods sold.

Net Realizable Value

The estimated selling price of goods minus the estimated costs of completion and the costs necessary to make the sale.