What Basic Concept Related to International Trade Is the Most

question 66

Multiple Choice

What basic concept related to international trade is the most important?

• A)comparative advantage
• B)absolute advantage
• C)resource cost
• D)the total amount of the good producible

---

Definitions:

Exchange Rates

The rate at which one currency can be exchanged for another, influencing international trade and investments.

Functional Currency

The primary currency of operation chosen by a business, usually the local currency where the business primarily generates and spends cash.

Income Statement

A report detailing a business's income and expenditures throughout a given time frame, which ultimately reveals a profit or deficit.

Sales

The exchange of goods or services for money, representing revenue for a company.