The ________ Theory States That a Country's Export Eventually Becomes

question 6

Multiple Choice

The ________ theory states that a country's export eventually becomes its import.

• A) competitive advantage
• B) factor proportions
• C) international product life cycle
• D) new trade

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Definitions:

Opportunity Rate

The return of a foregone option when another investment is chosen, embodying the concept of opportunity cost.

Time-Value

The belief that possessing money today is more valuable than having the same sum later, due to its capability to accrue earnings.

Compounded Monthly

A method of calculating interest where the earned interest is added to the principal balance at the end of each month, so that the interest for the next month is calculated on a higher balance.