Country a Exports Electronic Goods from Country B Although There

question 77

Multiple Choice

Country A exports electronic goods from Country B although there are no underlying differences in factor endowments between the two countries. Which of the following theories explains this anomaly?

• A) Comparative advantage theory
• B) New trade theory
• C) Ricardo's theory
• D) Smith's theory

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Definitions:

Rent-Sharing Agreement

An arrangement where income generated from a property is shared between the owner and another party, often in proportion to their contributions or roles.

Monthly Rental

is a periodic payment made by a lessee to a lessor for the use of property, land, or equipment, typically paid once a month.

Deprive Possession

The act of taking away or denying someone's access or ownership of property or an object.

Eviction

Depriving the tenant of the possession of leased premises.