We Refer to Countries That Have Relatively Low Levels of Economic

question 17

Multiple Choice

We refer to countries that have relatively low levels of economic development as:

• A)marginal countries.
• B)less developed countries.
• C)import-subsidizing countries.
• D)export-oriented countries.

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Definitions:

Absolute Advantage

A concept in international trade theory that occurs when a country can produce a good more efficiently and at a lower cost than another country.

Domestic Advantage

The competitive edge a company gains by operating within its home country, benefiting from familiar market conditions and regulations.