Which of the Following Statements Is True Regarding Comparative Advantage

question 81

Multiple Choice

Which of the following statements is true regarding comparative advantage?

• A) Comparative advantage is becoming rarer these days.
• B) Every country possesses an absolute advantage.
• C) Developing countries possess no comparative advantage.
• D) A nation must first possess an absolute advantage in a particular area before it can gain a comparative advantage.

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Definitions:

SWOT Analysis

A strategic planning tool used to identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Strengths

Attributes of an individual or organization that are beneficial and can be leveraged to achieve goals and overcome challenges.

Weaknesses

Aspects of an organization or individual that are detrimental to achieving its objectives and can be internal vulnerabilities or areas needing improvement.

Opportunities

Opportunities refer to favorable situations or conditions that can lead to the success of an activity, project, or business venture.