A Country Will Specialize in That Good in Which

question 61

Multiple Choice

A country will specialize in that good in which

• A)it has absolute advantage.
• B)it has a moderate cost of production.
• C)it can produce at minimum average cost.
• D)it has comparative advantage.

---

Definitions:

IPO

Initial Public Offering, the process by which a private company becomes publicly traded on a stock exchange by offering its shares for sale to the public for the first time.

Subsidiary

A business that is either fully or partially owned and controlled by another entity, referred to as the parent company.

Tender Offer

A tender offer is a public, open offer or invitation (usually made by a company or investor) to all shareholders of a publicly traded corporation to tender their stock for sale at a specific price during a certain time period.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interests and rights such as receiving dividends and voting at shareholder meetings.