Which of the Following Actions Reflect the Use of Trade

question 78

Multiple Choice

Which of the following actions reflect the use of trade policies by governments to further their foreign policy objectives?

• A)Pressuring "rogue states" that do not abide by international law or norms
• B)Enforcing tougher intellectual property regulations
• C)Threatening high tariffs and quotas
• D)Limiting or banning imports of unsafe or substandard products

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Definitions:

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, leading to specialized production and trade.

Absolute Advantage

A situation in which a country, individual, or company can produce a good at a lower cost per unit than competitors.

Opportunity Cost

The price paid for not choosing the second-best option during decision-making.

Higher Opportunity Cost

The increased potential loss of choosing one option over another, indicating a sacrifice of higher value alternatives.