Trade Based Upon Comparative Advantage Is Economically Beneficial Because

question 4

Multiple Choice

Trade based upon comparative advantage is economically beneficial because:

• A)it promotes an efficient allocation of world resources
• B)it gives consumers a narrower range of products to choose from
• C)it gives governments the chance to charge high tariffs on imports
• D)it allows government policy makers to choose the products the economy will specialize in
• E)it gives domestic businesses the chance to reduce the number of competitors they face in product markets

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Definitions:

IFRS Foundation Trustees

The oversight body responsible for governance and oversight of the International Financial Reporting Standards Foundation.

International Accounting Standards

A set of accounting standards developed and overseen by the International Accounting Standards Board (IASB), aiming to promote global consistency in financial reporting.

Conceptual Framework

The conceptual framework in accounting is a system of interrelated objectives and fundamentals that provides the foundation for financial accounting and reporting standards.

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Financial reports intended to meet the needs of various users who are not in a position to demand custom reports tailored to their information needs.