A Country Is Most Likely to Have a Comparative Advantage

question 136

Multiple Choice

A country is most likely to have a comparative advantage in the production of cars if:

• A)it imports most of the raw materials necessary to produce cars.
• B)its citizens prefer driving cars to other forms of transportation.
• C)it has strict environmental protection laws governing automobile emissions.
• D)it has a relative abundance in the natural resources needed to produce cars.

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Definitions:

Maintenance

The process of preserving the condition of tools, machines, buildings, and other physical assets through routine upkeep and repairs.

Repair

The process of fixing or restoring something that is broken or damaged.

Operations

The day-to-day activities involved in running a business, including production, logistics, and distribution.

Cycle Counting

A continuing reconciliation of inventory with inventory records.