When a Country or a Region of a Country Specializes

question 58

Multiple Choice

When a country or a region of a country specializes in producing the product that has the lower opportunity cost compared to another country or region, it is practicing

• A) absolute advantage.
• B) cost disadvantage.
• C) regional advantage.
• D) comparative advantage.

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Definitions:

Smart Card

A smart card is a plastic card embedded with a microprocessor chip, which can store and process data, used for various purposes such as financial transactions, identification, and access control.

Dividend Capture

An investment strategy aimed at buying stocks before the ex-dividend date and selling them shortly after, to collect dividend payouts.

Lockboxes

Banking service that speeds up collection of payments by having those payments mailed directly to a location accessible by the bank, reducing processing time.

Seasonal Fluctuations

Variations in sales, inventory levels, or business activity that regularly occur at certain times of the year due to seasons.