In Analyzing the Gains and Losses from International Trade, to Say

question 171

Multiple Choice

In analyzing the gains and losses from international trade, to say that Moldova is a small country is to say that

• A)Moldova can only import goods; it cannot export goods.
• B)Moldova's choice of which goods to export and which goods to import is not based on the principle of comparative advantage.
• C)only the domestic price of a good is relevant for Moldova; the world price of a good is irrelevant.
• D)Moldova is a price taker.

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Definitions:

Designer Jeans

High-end jeans often made by or branded by leading fashion designers, characterized by unique designs, high-quality materials, and a higher price.

Transnational Corporations

Are large businesses with head offices in rich countries. They rely increasingly on foreign labour and foreign production; skills and advances in design, technology, and management; world markets; and massive advertising campaigns. They are increasingly autonomous from national governments.

Nation-states

Political entities consisting of a sovereign state whose citizens or subjects are relatively homogeneous in factors such as language or common descent.

Autonomous

The quality of having independence or self-governance, capable of making decisions or operating independently from external control.