Based on the Comparative Cost Ratios Implied in Figure 35

question 107

Multiple Choice

Based on the comparative cost ratios implied in Figure 35.2,it is clear that

• A)The United States has a comparative advantage in baseballs and Mexico has a comparative advantage in golf shoes.
• B)Mexico should import all of its golf shoes from the United States.
• C)The United States should import all of its baseballs from Mexico.
• D)The United States should specialize in producing golf shoes,and Mexico should specialize in producing baseballs.

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Definitions:

Strategic Knowledge

Deep understanding and insight related to the formulation, implementation, and evaluation of plans to achieve business objectives.

Programmed Decisions

Decisions that are routine and repetitive, which can be handled by established business rules and procedures.

Imagery

The use of visually descriptive or figurative language in writing to create vivid pictures in the reader's mind or the use of visual representations in the mind through imagination.

Logical Sequence

The orderly and coherent structure and progression of ideas, events, or steps.