Given the Following Information, Does a Comparative Advantage Opportunity Exist

question 21

Multiple Choice

Given the following information, does a comparative advantage opportunity exist?

• A)Yes - both parties can pay less interest by borrowing where they have a comparative advantage and swapping their interest payments.
• B)Yes - the potential savings from entering a swap are 1 per cent.
• C)Yes -but a swap would reduce the cost of funds for B only.
• D)No.
• E)Cannot say with the available information.

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Definitions:

RFP

Request for Proposal, a document issued by an organization soliciting proposals from vendors for the procurement of a product or service, as part of the procurement process.

Sales Representative

An individual who represents a company's products or services, aiming to persuade potential buyers to make a purchase.

Alienate People

To cause individuals to feel isolated or estranged, often as a result of actions or policies that are perceived as unfriendly or unrelatable.

Modified Rebuy

A purchasing situation where a buyer reorders a product with minor modifications or adjustments.