Asked by Enrique Cuevas on Jun 03, 2024
Verified
Only those products in which a country has an absolute advantage will be competitive in world markets.
Absolute Advantage
A situation where a country or individual can produce more of a good or service with the same amount of resources than others.
Competitive
A market situation where multiple firms or entities vie for the same customers or market share.
World Markets
The global marketplace where goods, services, currencies, and investments are traded across national borders, facilitating international economic integration.
- Understand the principles of absolute and comparative advantage within the realm of global trade.
Verified Answer
ZK
Zybrea KnightJun 06, 2024
Final Answer :
False
Explanation :
Countries can also be competitive in products where they have a comparative advantage, which means they can produce a good at a lower opportunity cost than other countries, even if they don't have an absolute advantage.
Learning Objectives
- Understand the principles of absolute and comparative advantage within the realm of global trade.