A country can still gain from trading certain goods even though its trading partners can produce those goods more cheaply. How is known this principle?

Related Mcqs:

The term Cartel refers to ?

A. A combination of firms for business purposes B. An official agreement between governments at war, especially for exchange of prisoners C. Unity of parties, factions or nations in a common cause D. All of the above...

What is called the result of a state’s borrowing from its population, from foreign governments or from international institutions ?

A. National debt B. Public debt C. Both of them D. None of them...

A company’s first sale of stock to the public is called ?

A. Public Offering B. First Public Offering C. Initial Public Offering (IPO) D. Going Public...

What is called the trade without restriction of tariffs, quotas, or foreign exchange controls ?

A. Open trade B. Free trade C. Open sky trade D. Easy trade...

The term “Dumping” means ?

A. The sale of the sub-standard commodity B. Sale in a foreign market of a commodity at a price below marginal cost C. Sale in a foreign market of a commodity just at marginal cost without too much of profit D. Smuggling of goods without paying any customs duty...