Podcast
Questions and Answers
What is the basis for the Principle of Comparative Advantage in international trade?
What is the basis for the Principle of Comparative Advantage in international trade?
- Exporting products with the greatest absolute advantage
- Importing products with the greatest comparative disadvantage
- Exporting products with the least comparative disadvantage (correct)
- Importing products with the least absolute advantage
In international trade, a country should export a product if it...
In international trade, a country should export a product if it...
- Has the greatest comparative disadvantage in that product (correct)
- Wants to increase its import costs
- Experiences challenges producing that product
- Has an absolute advantage in that product
What should a country do in international trade if it has the least comparative advantage in a particular product?
What should a country do in international trade if it has the least comparative advantage in a particular product?
- Export that product
- Invest more in producing that product
- Avoid trading altogether
- Import that product (correct)
Which situation would go against the Principle of Comparative Advantage in international trade?
Which situation would go against the Principle of Comparative Advantage in international trade?
Considering the Principle of Comparative Advantage, what should a country do if it faces challenges producing a certain product?
Considering the Principle of Comparative Advantage, what should a country do if it faces challenges producing a certain product?
Which type of foreign direct investment involves building a completely new business through a business plan developed by the parent company?
Which type of foreign direct investment involves building a completely new business through a business plan developed by the parent company?
What does assembly involve in the context of manufacturing?
What does assembly involve in the context of manufacturing?
In FDI strategies, what does manufacturing encompass?
In FDI strategies, what does manufacturing encompass?
Which type of international acquisition involves acquiring a company that is already in existence?
Which type of international acquisition involves acquiring a company that is already in existence?
What distinguishes acquisition from greenfield investment in terms of FDI strategies?
What distinguishes acquisition from greenfield investment in terms of FDI strategies?
