When Two Countries Specialize in the Production of Different Goods

question 178

Multiple Choice

When two countries specialize in the production of different goods and trade with each other, it is most likely each country will

• A) export the goods in which it has a comparative advantage.
• B) export the goods in which it has an absolute advantage.
• C) import the goods in which it has a comparative advantage.
• D) import the goods in which it has an absolute advantage.

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Definitions:

Lewin's Force Field Model

A model that describes organizational change as a state of imbalance between forces pushing for change and those resisting it.

Unfreezing

Involves the process of making an organization or individual ready for change, by breaking down existing norms and behaviors.

Refreezing

The phase in the change process where new behaviors, values, and attitudes are solidified as the new status quo.

Force Field Analysis

A management technique developed by Kurt Lewin, used to identify all the forces for and against a decision or a change, helping to visualize and analyze the situation for better decision-making.