Cadmia and Rhodia Specialize in the Production of Textiles and Agricultural

question 64

Multiple Choice

Cadmia and Rhodia specialize in the production of textiles and agricultural products respectively. They are the best at their respective specializations. Cadmia trades textiles with Rhodia in exchange for agricultural products. Which of the following is illustrated by this form of trade between Cadmia and Rhodia?

• A)Product life-cycle theory
• B)Heckscher-Ohlin theory
• C)The concept of absolute advantage
• D)Mercantilism
• E)Theory of national competitive advantage

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Definitions:

Cochlea

A spiral-shaped, fluid-filled inner ear structure that is essential for hearing; it translates sound vibrations into nerve impulses.

Blind Spot

A location in the visual field that corresponds to the lack of light-detecting photoreceptor cells on the optic disc of the retina, leading to a gap in the field of vision.

Reflected Light

Light that bounces off an object's surface, which can be perceived and analyzed to determine the object's properties.

Visual Spectrum

the range of wavelengths of electromagnetic radiation visible to the human eye, generally considered to be between 400 and 700 nanometers.