Based on the Comparative Cost Ratios Implied in Figure 35

question 49

Multiple Choice

Based on the comparative cost ratios implied in Figure 35.2, it is clear that

• A)The United States has a comparative advantage in baseballs and Mexico has a comparative advantage in golf shoes.
• B)Mexico should import all of its golf shoes from the United States.
• C)The United States should import all of its baseballs from Mexico.
• D)The United States should specialize in producing golf shoes, and Mexico should specialize in producing baseballs.

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Definitions:

Corporation

A legal entity that is distinct and separate from its owners, which can own property, incur liabilities, and is subject to taxation.

Cumulative Voting

A voting system in corporate governance that allows shareholders to concentrate their votes on a single candidate, enhancing minority shareholders' representation.

Minority Shareholder

An investor or shareholder who owns less than 50% of a company's shares, holding lesser voting power and control over corporate decisions compared to majority shareholders.

Extraordinary Measures

Extraordinary measures refer to unconventional or exceptional actions taken, often by governments or organizations, in response to critical and unusual situations.