An Individual or Country That Has a Comparative Advantage in the Production

question 74

Multiple Choice

An individual or country that has a comparative advantage in the production of one good

• A) may or may not have an absolute advantage in the good's production.
• B) must not have an absolute advantage in the production of the other good.
• C) must not have an absolute advantage in the good's production.
• D) must have an absolute advantage in the good's production.
• E) must not have a specific advantage in the good's production.

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Definitions:

Low-Cost Strategy

Low-cost strategy is a competitive approach where a company aims to become the lowest cost producer in its industry, offering products or services at a price lower than its competitors to attract cost-sensitive customers.

Differentiation Strategy

A business strategy where a company seeks to distinguish its products or services from competitors, typically through quality, design, or unique features.

Profitable Growth

An increase in revenue that leads to enhanced profitability, reflecting both expansion and efficient operations.

Transnational Strategy

A business strategy that involves operating in various countries around the world, recognizing both global efficiency and local responsiveness.