Scenario 20.2 Suppose Labor Productivity Differences Are the Only Determinants of Comparative

question 19

Multiple Choice

Scenario 20.2
Suppose labor productivity differences are the only determinants of comparative advantage, and both Egypt and Ghana produce only corn and cocoa. In Egypt, 10 bushels of corn or 15 pounds of cocoa can be produced in a day. In Ghana, one day of labor can be used to produce either 2 bushels of corn or 8 pounds of cocoa.
-Based on Scenario 20.2, which of the following terms of trade would benefit both countries?

• A)1 pound of cocoa is equal to 0.10 bushels of corn.
• B)1 pound of cocoa is equal to 2 bushels of corn.
• C)1 pound of cocoa is equal to 1 bushels of corn.
• D)1 pound of cocoa is equal to 0.5 bushels of corn.
• E)1 pound of cocoa is equal to 1.5 bushels of corn.

Understand the primary components and purpose of a marketing strategy.

Identify and apply various strategic tools and analyses, such as SWOT analysis and product-market growth analysis.

Recognize the importance of aligning marketing strategies with core competencies, environmental opportunities, and long-term visions.

Understand the role of differentiation and business strategy in the success of companies like IKEA.

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Definitions:

Overhead Costs

Expenses related to the operation of a business that cannot be directly tied to a specific product or service, such as utilities or administrative salaries.

Cost of Goods Manufactured

This refers to the total production cost incurred by a company to manufacture products in a specific period, including materials, labor, and overhead costs.

Ending Inventory

The total value of all goods available for sale at the end of an accounting period.

Merchandising Company

A type of business that purchases products to resell them at a profit without changing their form.