A Country Has a Comparative Advantage in a Product If

question 38

Multiple Choice

A country has a comparative advantage in a product if the world price is

• A)lower than that country's domestic price without trade.
• B)higher than that country's domestic price without trade.
• C)equal to that country's domestic price without trade.
• D)not subject to manipulation by organizations that govern international trade.

---

Definitions:

Special Purpose Entity

A legal entity created by a firm for a specific purpose, often to isolate financial risk.

Sponsoring Corporation

An entity that supports or backs another entity, event, or project, often through financial investment or by lending its brand's credibility.

Short-Term Basis

A term indicating a period or scenario focused on the immediate or near future, often involving decisions or plans that are temporary or for a duration of up to one year.

Negative Residual Value

Negative residual value implies that the value of an asset at the end of its useful life is expected to be less than zero, indicating costs associated with disposal or removal.