Comparative Advantage in International Trade

question 188

Multiple Choice

Comparative advantage in international trade:

• A)is used only by large countries.
• B)is used to determine whether trade will be beneficial to both countries involved.
• C)provides benefits to developed countries only.
• D)does not determine what goods countries should produce.

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Definitions:

Legitimate Power

Authority that is recognized and accepted by others due to a person's position or role.

Organizational Structure

The arrangement of roles, responsibilities, and relationships within an organization, determining how activities are directed and managed.

Formal Authority

Officially sanctioned power given to an individual or entity to make decisions and enforce rules.

Organizational Structure

The system that outlines how activities are directed in order to achieve the goals of an organization, including the roles, responsibilities, and hierarchy.