ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A limit on the amount of foreign goods that can come into a country.
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Anything that slows down or prevents one country from exchanging goods with another.
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A tax placed on goods when they are brought into one country from another country.
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Products a country makes best that are demand on the world market.
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Detailed explanation-1: -1 If, for example, a country can produce bananas at a lower cost than oranges, it can choose to specialize and dedicate all its resources to the production of bananas, using some of them to trade for oranges. Specialization also occurs within a country’s borders, as is the case with the United States.
Detailed explanation-2: -Countries specialize in the production of goods for which they have a comparative advantage. Reason: The comparative advantage theory states that a country should produce the goods in which it has comparative advantage.
Detailed explanation-3: -Countries specialize in producing certain goods to gain a comparative advantage. Economies that promote their comparative advantages in producing a particular good are able to maximize the benefits of international trade.
Detailed explanation-4: -Specialization means that in our global economy we have many different companies making specific parts that are then acquired by other companies to assemble their products, like cell phones. Specialization leads to a much more efficient supply chain and opens up greater production possibilities.