Which Trade Theory Is Tantamount to a Short-Run Version of the Factor

question 13

Multiple Choice

Which trade theory is tantamount to a short-run version of the factor price equalization theory?

• A) Specific factors theory
• B) Product life cycle theory
• C) Economies of scale theory
• D) Overlapping demand theory

---

Definitions:

Qualified Pension Plan

A retirement plan conforming to IRS requirements, offering tax advantages and benefits to employees.

Deducted Immediately

Expenses that can be subtracted from gross income in the year they are incurred, without capitalization or amortization.

Employer-sponsored Retirement Plan

An employer-sponsored retirement plan is a savings plan set up by employers to help employees prepare for retirement, with common types being 401(k) and 403(b) plans.

Deductible Contribution

An eligible contribution to a qualified plan or account that reduces taxable income.