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:

Stakeholders

Individuals or groups that have an interest in the performance and activities of a company, including employees, customers, suppliers, and investors.

Strategic Goal

Refers to a long-term aim that guides decision-making and strategy formulation in an organization.

Planning Gap

The difference between targeted performance results and actual outcomes, highlighting areas that require corrective action or revised strategies.

Life Cycle

The series of stages a product goes through from introduction to growth, maturity, and decline in the market.