Comparative Advantage Was Once the Cornerstone of International Trade Theory

question 25

True/False

Comparative advantage was once the cornerstone of international trade theory, but today it is archaic, simplistic, and irrelevant for explaining investment choices made by MNEs.

Understand the concept and impact of the hedonic treadmill on individuals' happiness levels.

Grasp the importance of positive psychology and practices that increase happiness.

Identify the role of emotions and emotional expressions in individual well-being.

Recognize the factors that influence happiness, including physical health, social connections, and personal achievements.

---

Definitions:

Intrinsically Motivated

Being driven by internal rewards, such as personal satisfaction or the joy of doing something for its own sake.

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, and praise, rather than for the sake of the activity itself.

Competent

Having the necessary ability, knowledge, or skill to do something successfully or efficiently.

William McDougall

A psychologist known for his work on social psychology and introducing the concept of the "group mind" and the theory of instincts.