Compared to the Comparative Advantage Theory,the Product Life-Cycle Theory

question 149

Multiple Choice

Compared to the comparative advantage theory,the product life-cycle theory:

• A)fails to predict the possibility of globally dispersed production.
• B)is increasingly relevant to explaining trade patterns in the modern world.
• C)makes a lot of simplifying assumptions.
• D)explains the current labor advantages in the U.S.

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Definitions:

Economic Organization

The arrangement and coordination of activities and resources within a society or among entities to achieve economic objectives.

Division Of Labor

The allocation of different tasks and responsibilities to different individuals or groups, often increasing efficiency in production or services.

Durkheim

A founding figure in sociology, Emile Durkheim's work focused on social cohesion, the functions of social institutions, and the concept of anomie.

Macro-Level

Pertaining to large-scale social processes, structures, and systems that shape societies and their institutions.