When a Smaller Country with Fewer Resources Specializes Its Production

question 6

Multiple Choice

When a smaller country with fewer resources specializes its production and gains access to larger,international markets,this can create

• A) a smaller distribution network.
• B) increased per-unit costs.
• C) decreased sales.
• D) economies of scale.
• E) inefficiencies.

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Definitions:

Municipal Bond

A bond issued by a local government or territory, or one of their agencies. It is generally used to finance public projects such as roads, schools, airports, and infrastructure-related repairs.

Treasury Bill

A treasury bill is a short-term government security issued at a discount from the face value and pays no interest, but is redeemed at its full face value at maturity.

Treasury Bond

A Treasury bond is a long-term, fixed interest rate debt security issued by the U.S. government with a maturity of more than 10 years.

Price-Earning Ratio

A financial ratio that measures the market value of a stock compared to its earnings per share, indicating the relative value of a company's shares.