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Question
David Ricardo s theory of comparative advantage explains global trade in terms of the
A) first-mover advantage that certain countries and firms enjoy.
B) geographical differences between various countries.
C) opportunity cost.
D) late-mover advantage that certain countries and firms possess.
Answer
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Related questions
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By pooling cash resources centrally, firms can
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Pooling the cash of all the subsidiaries centrally
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_____ occurs when high-cost domestic producers are replaced by low-cost producers within the free trade area.
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B) Trade diversion
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A political benefit of economic integration is that it
A) enables participants to achieve gains from the free flow of trade.
B) enables participants to achieve gains from the free flow of investment.
C) allows countries to specialize in the production of goods and services that they can produce most efficiently.
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_____ eliminates trade barriers between member nations, adopts a common external policy, and permits factors of production to move freely between member countries but it also requires a common currency, harmonization of members tax rates, and a common monetary and fiscal policy.
A) A free trade area
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A) Treaty of Rome
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