The Theory of Comparative Advantage Suggests

question 35

Multiple Choice

The theory of comparative advantage suggests:

• A) that an industrialised country should only export.
• B) that a country that is not competitive should import everything.
• C) that a country should trade based on its comparative advantage.
• D) that one country exploits another country.

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Definitions:

First-Mover Advantage

The advantage in competition acquired by the first major player in a market niche.

Market Niche

A specific segment of the market on which a business focuses its products or services, often defined by unique customer needs or preferences.

Competitors

Entities that vie for the same customers or market share in a particular industry, often driving innovation and customer choice.

Self-Management

The ability of an individual to manage their own goals, behavior, and resources effectively without the need for external control or supervision.