Identify the Theory That Argues That Advanced Nations Have an Incentive

question 52

Multiple Choice

Identify the theory that argues that advanced nations have an incentive to develop a new offering and hence such nations always tend to create a good or service for the first time.

• A) Absolute advantage
• B) Ricardo
• C) Product life-cycle
• D) Heckscher-Ohlin

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Definitions:

Highest Rating

The top tier or grade assigned by rating agencies to entities or securities, indicating the lowest risk of default.

Bid Price

The highest price a buyer is willing to pay for an asset in the financial markets.

Dealer

An individual or firm in the financial markets that stands ready to buy or sell securities for their own account, at their own risk.

Security

A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship with governmental body or a corporation (bond), or rights to ownership as represented by an option.