David Ricardo's Theory of Comparative Advantage Explains Global Trade in Terms

question 38

Multiple Choice

David Ricardo's theory of comparative advantage explains global trade in terms of the

• A) first-mover advantage that certain countries and firms enjoy.
• B) geographical differences between various countries.
• C) international differences in labor productivity.
• D) late-mover advantage that certain countries and firms possess.

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Definitions:

Coral Reef

Underwater ecosystems characterized by reef-building corals. Reefs form barriers to protect coastlines from waves and storms and are home to a diverse range of marine species.

Grassland Habitat

Areas where grasses predominate over other plant types, which support a varied mix of flora and fauna specialized to live in these environments.

Keystone Species

A species that plays a critical role in maintaining the structure of an ecological community, affecting many other organisms in the environment and helping to determine the types and numbers of various other species in the community.

Endemic Species

Species that are native to and can only be found within a specific geographic area.