The Shipbreakers of Alang Utilize Much Labor and Little Capital

question 23

Multiple Choice

The Shipbreakers of Alang utilize much labor and little capital, thereby supporting the applicability of the

• A) factor proportions explanation of the sources of comparative advantage.
• B) specific factor theory of comparative advantage.
• C) monopolistic competition theory of comparative advantage.
• D) scale economies theory of comparative advantage.
• E) basis of the non-dumping legislation.

Analyze the role of exchange rates in trade balance and how they affect trade surplus or deficit.

Evaluate the principles guiding the international trade according to comparative and absolute advantage theories.

Determine the impact of specialization and trade on production and consumption of goods between countries.

Identify terms of trade that benefit both countries involved in trade.

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Definitions:

Accountability

The obligation of an individual or organization to account for its activities, accept responsibility for them, and disclose the results in a transparent manner.

Judgment

The ability to make considered decisions or come to sensible conclusions.

Advocacy

The act of supporting or arguing for a cause, policy, or group of people, often to promote change.

Bioethics

A field of study that deals with the ethical implications of biological research and applications, especially in medicine.