Cadmia and Rhodia Specialize in the Production of Textiles and Agricultural

question 21

Multiple Choice

Cadmia and Rhodia specialize in the production of textiles and agricultural products respectively.They are the best at their respective specializations.Cadmia trades textiles with Rhodia in exchange for agricultural products.Which of the following is illustrated by this form of trade between Cadmia and Rhodia?

• A)product life-cycle theory
• B)Heckscher-Ohlin theory
• C)absolute advantage
• D)mercantilism
• E)theory of national competitive advantage

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Definitions:

Rising Mantle

The ascent of mantle material towards the Earth's surface, potentially leading to volcanic activity where the crust is thin.

Descending Plate

A section of the earth's crust that moves downward into the mantle beneath another plate, often responsible for volcanic activity and earthquakes.

Eruptions

Violent expulsions of materials from a volcano or geothermal vent, including lava, ash, and gases.

Accretionary Prism

A prism- or wedge-shaped, structurally complex zone of faults, folds, and mostly metamorphosed rocks that form along the upper parts of a subduction zone; material derived from sediment contributed by adjacent volcanoes or a continent, along with oceanic crust scraped off the downgoing slab.