What Term Is Used to Describe Situations in Which Countries

question 119

Multiple Choice

What term is used to describe situations in which countries specialize in and trade different varieties of the same type of product?

• A) comparative advantage
• B) the Heckscher-Ohlin model
• C) intra-industry trade
• D) increasing returns to scale

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Definitions:

Reciprocity Norm

A social rule that suggests people should return help and cooperation they have received from others.

Potential Customer

An individual or entity that could be interested in purchasing a product or service, but has not yet decided to do so.

Reactance Response

A psychological reaction that occurs when people feel their freedom to choose or act is threatened, leading them to resist the influence or change.

Foot-in-the Door Technique

A persuasion strategy where a small request is made first in order to increase the likelihood of compliance with a larger request later.