The Principle of Comparative Advantage Asserts That

question 12

Multiple Choice

The principle of comparative advantage asserts that

• A)not all countries can benefit from trade with other countries.
• B)the world price of a good will prevail in all countries,regardless of whether those countries allow international trade in that good.
• C)countries can become better off by exporting goods,but they cannot become better off by importing goods.
• D)countries can become better off by specializing in what they do best.

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Definitions:

Environmental Forces

External factors such as economic, technological, legal, and social factors that affect an individual or organization's ability to operate or achieve its goals.

Internal Perspective

Focuses on examining internal attributes, motives, and processes that influence an individual's behavior and decisions.

Organizational Success

The achievement of the goals and objectives set by an organization, which can include profitability, market share expansion, employee satisfaction, and innovation.

Transformation

A comprehensive change in the behavior, structure, or operations of an organization or individual, often leading to significant improvement or development.