_____ Suggests That Trade Is a Positive-Sum Game in Which

question 70

Multiple Choice

_____ suggests that trade is a positive-sum game in which all participating countries fetch economic gains.

• A) The Heckscher-Ohlin theory
• B) Mercantilism
• C) The theory of comparative advantage
• D) Leontief's paradox
• E) The Samuelson critique

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Definitions:

Sustainable Growth Rate

The maximum rate at which a company can grow its earnings, dividends, and sales without having to increase its equity or take on new debt.

External Financing

Funds raised from sources outside of the company, such as loans, investors, or grants, to support business activities.

Debt-Equity Ratio

The Debt-Equity Ratio is a measure of a company's financial leverage, indicating the proportion of equity and debt used to finance a company's assets.

Capital Intensity Ratio

A financial metric indicating the amount of capital needed per unit of revenue, typically used to assess the business model's reliance on physical capital.