The Comparative Advantage Theory Holds That a Country Will Gain

question 46

Multiple Choice

The comparative advantage theory holds that a country will gain from trade ________.

• A)when it exports products for which it has an acquired advantage and imports products for which another country has a natural advantage
• B)if it exports goods it can produce more efficiently than other countries and imports goods other countries can produce more efficiently than it can
• C)even though it can produce all goods more efficiently than other countries
• D)if it exports products using its abundant production factors in exchange for products for which it has scarce production factors

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Definitions:

Management Function

The activities and responsibilities of managing an organization, including planning, organizing, leading, and controlling.

Henri Fayol

A French mining engineer and management theorist hailed as a founding father of modern management methods, especially for his principles of administrative management.

Managerial Functions

The core duties that managers must perform: planning, organizing, leading, and controlling, to ensure the effective operation of an organization.

Universal Managerial Functions

The fundamental tasks or responsibilities, such as planning, organizing, leading, and controlling, which are common to all managers regardless of their role or level within an organization.