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:

Substitute Goods

are products or services that can be used in place of each other due to their similar characteristics, affecting consumer choice.

Reasonable Expenses

Costs that are necessary and appropriate for completing a task or project, considering the circumstances.

Substitute Widgets

Alternate or replacement products used in place of original items in various applications.

Justifiably Withheld

Pertains to information or documents that may legally be kept confidential or not disclosed due to valid exemptions under applicable laws or regulations.