Allowing Free Trade Can Lead to Greater Output Because of the Principle

question 24

Multiple Choice

Allowing free trade can lead to greater output because of the principle of:

• A)​absolute advantage.
• B)​rule of 70.
• C)​comparative advantage.
• D)​scarcity.

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Definitions:

"Make" Tactic

A strategy where a company decides to produce its products in-house rather than outsourcing.

"Ally" Tactic

A strategy where individuals or groups support and stand up for those in less privileged positions or facing discrimination.

Greenfield Venture

Refers to a type of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.

Wholly Owned Subsidiary

A company whose entirety of shares is held by another corporation, the parent company, thus giving the parent complete control.