If Specialization Were Carried Out by Each Country in Exhibit

question 228

Multiple Choice

If specialization were carried out by each country in Exhibit 21-4 on the basis of comparative advantage,then:

• A) Brazil would produce neither coffee nor tea.
• B) China would produce both coffee and tea.
• C) Brazil would produce tea and China would produce coffee.
• D) Brazil would produce coffee and China would produce tea.

---

Definitions:

Operating Current Assets

are assets that are expected to be converted into cash or used up within one year in the course of business.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Inventory

The goods and materials a business holds for the purpose of resale, production, or repair.

Best-price Requirements

Regulatory or policy stipulations that ensure consumers or buyers are getting the most favorable price available for goods or services, often seen in government procurement.