The Relationship Between Trade and Specialization Is Best Characterized as Follows

question 48

Multiple Choice

The relationship between trade and specialization is best characterized as follows:

• A) Trade decreases specialization, which in turn increases the demand for trade.
• B) Trade decreases specialization, which in turn decreases the demand for trade.
• C) Trade increases specialization, which in turn increases the demand for trade.
• D) Trade increases specialization, which in turn decreases the demand for trade.

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Definitions:

Cost Leadership

A business strategy focusing on gaining advantage by reducing production or service costs below those of competitors.

Transnational Strategy

A business strategy that involves operating globally but with responsiveness to local needs and preferences.

Global Operations

The activities conducted by an organization to manage its business across various countries worldwide.

Local Markets

Regional or community-based marketplaces where goods and services are traded, often influenced by local demand and supply.