China Has Developed a Comparative Advantage in the Production of Children's

question 37

Multiple Choice

China has developed a comparative advantage in the production of children's toys.The source of this comparative advantage is

• A)superior process technology.
• B)a large supply of unskilled workers and relatively little capital.
• C)investment in capital used to produce toys.
• D)a large supply of natural resources.

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Definitions:

Verifiability

A concept in accounting referring to the ability to ensure that different knowledgeable and independent observers can agree that a particular representation of financial information is faithfully depicted.

Reliable Information

Information that is accurately and precisely presented, free from significant error or bias, making it dependable for making financial decisions.

Diversified Group

A group of companies or entities operating across different sectors or industries, reducing risk through diversification.

Opportunities for Growth

Potential scenarios or strategies that an organization identifies as capable of driving expansion, increasing revenue, or enhancing market share.