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The biggest advantage of dumping is the ability to
flood a market with product prices that are often
considered fair.
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Comparative advantage refers to the ability to produce
goods and services at a lower opportunity cost, not
necessarily at a greater volume or quality.
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An opportunity cost is a potential benefit that
someone gains when selecting a particular option over
another.
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Comparative advantage suggests that countries will
engage in trade with one another, exporting the goods
that they have a relative advantage in.
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Absolute advantage refers to the uncontested
superiority of a country to produce a particular good
better.
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Countries without any clear absolute advantage do
gain from trade because they have comparative
advantage.
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Dumping occurs when a country or company exports
a product at a price that is higher in the foreign
importing market than the price in the exporter's
domestic market.
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According to the international trade theory, even if a
country has an absolute advantage over another, it
can still benefit from specialization.
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GDP measures the value of goods and services
produced by only a country's citizens but both
domestically and abroad.
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Comparative advantage is a key insight that trade will
still occur even if one country has an absolute
advantage in all products.
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A comparative advantage gives a company the ability
to sell goods and services at a lower price than its
competitors and realize stronger sales margins.
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International trade ultimately results in more
competitive pricing and brings a cheaper product
home to the consumer.
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A country that exports more goods and services than
it imports has a positive trade balance.
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GNP measures the value of goods and services
produced within a country's borders, by citizens and
non-citizens alike.
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Comparative advantage refers to the ability to produce
more or better goods and services than somebody
else.
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Dumping is considered a form of price discrimination
and it occurs when a manufacturer lowers the price of
an item entering a foreign market to a level that is less
than the price paid by domestic customers in the
originating country.
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Comparative advantage is an economy's ability to
produce a particular good or service at a higher
opportunity cost than its trading partners.
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China’s comparative advantage with the United States
is in the form of cheap labor since chinese workers
produce simple consumer goods at a much lower
opportunity cost.
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A country that imports more goods and services than
it exports in terms of value has a trade surplus while a
country that exports more goods and services than it
imports has a trade deficit.
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Dumping practice is considered intentional with the
goal of obtaining a competitive advantage in the
importing market.
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If a country cannot efficiently produce an item, it can
obtain it by trading with another country that can;
this is known as comparative advantage in
international trade.
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Balance of trade (BOT) is the difference between the
value of a country's imports and exports for a given
period and is the largest component of a country's
balance of payments (BOP).
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A country that imports more goods and services than
it exports in terms of value has a positive trade
balance.
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True
 False
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The United States’ comparative advantage is in
specialized, capital-intensive labor since Americans
produce sophisticated goods or investment
opportunities at greater opportunity costs.
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Trading globally gives consumers and countries the
opportunity to be exposed to goods and services
available in their own countries, or which would be
more expensive domestically.
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True
False