Which of the Following Was the First International Trade Theory

question 68

Multiple Choice

Which of the following was the first international trade theory to account for changes in the patterns of trade over time? 

• A) Comparative advantage theory 
• B) Absolute advantage theory 
• C) Product life cycle theory 
• D) Factor endowment theory

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Definitions:

Comparable Businesses

Companies operating in the same or similar industry, used as benchmarks to assess relative performance, valuation, and strategic positioning.

Income

Money received, especially on a regular basis, for work or through investments.

Market

A place or system where buyers and sellers interact to exchange goods, services, or information, often determined by supply and demand.

Negotiation

The process of discussion aimed at reaching an agreement or compromise between two or more parties.