Which of the Following Theories Identifies Specialization as the Main

question 20

Multiple Choice

Which of the following theories identifies specialization as the main reason for international business activity?

• A)product life cycle theory of international trade
• B)theory of diversification
• C)doctrine of comparative advantage
• D)theory of globalization

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Definitions:

Financial Performance

A measure of how well a company is using its assets to generate profits, often analyzed through financial statements like the income statement and balance sheet.

Disaggregate

To break down into smaller components or elements for analysis or examination.

Financial Statement

A written report that quantitatively describes the financial health of a company, including balance sheets, income statements, and cash flow statements.

Reportable Segment

Part of a company that can be clearly distinguished operationally and financially from other parts of the company, requiring separate reporting under certain financial reporting frameworks.