If a Country Finds Its Comparative Advantage in Computer Production

question 105

Multiple Choice

If a country finds its comparative advantage in computer production, which is capital intensive, what will happen to the rental rate on capital when trade occurs?

• A) It will decrease.
• B) It will stay the same.
• C) It will increase.
• D) Not enough information is given to answer this question.

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Definitions:

Relationships

Connections or associations between individuals or entities, based on social, emotional, or professional interactions.

Sense of Power

The feeling of being in control and able to influence others or outcomes.

Competition

The rivalry among businesses or individuals for resources, customers, or market dominance.

Vital to Organization's Welfare

Considered essential for the survival, success, and health of an organization, often relating to key resources or strategic capabilities.