When,in Our Analysis of the Gains and Losses from International

question 161

Multiple Choice

When,in our analysis of the gains and losses from international trade,we assume that a particular country is small,we are

• A)assuming the domestic price before trade will continue to prevail once that country is opened up to trade with other countries.
• B)assuming there is no demand for that country's domestically-produced goods by other countries.
• C)assuming international trade can benefit producers,but not consumers,in that country.
• D)making an assumption that is not necessary to analyze the gains and losses from international trade.

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Definitions:

Locally Responsive

An approach or strategy where a company adjusts its products, services, and practices to better align with local buyer preferences and market conditions.

Knowledge Transfer

The process through which skills, knowledge, technologies, or methodologies are passed from one individual or organization to another.

Transnational Strategy

A global business approach that involves operating in multiple countries with a coordinated strategy, balancing global efficiency and local responsiveness.

Locally Responsive

Being locally responsive refers to a business strategy that involves tailoring products, services, and operations to meet the cultural, legal, and consumer preferences of local markets.