Why Is It Impossible That All Industries in a Developing

question 7

Multiple Choice

Why is it impossible that all industries in a developing country qualify as infant industries?

• A)You cannot have a comparative advantage in everything.
• B)You cannot have an absolute advantage in everything.
• C)This would violate international law.
• D) This would reduce the terms of trade.

---

Definitions:

Insurable Interest

The requirement that a policyholder must stand to lose financially if the insured event occurs, establishing a legal right to insure the item or life.

Insurance Company

A business entity that provides financial protection and compensation for losses in exchange for payment of premiums.

Premium

The amount paid for an insurance policy or the charge for accepting a higher risk in financial transactions.

Business Interruption Insurance

An insurance that provides coverage for revenue lost due to a temporary business closure caused by an insured disaster.