Question

when a nation produces the goods and services it can produce relatively more efficiently compared to other countries, it is said to possess a(n) ______. a. comparative advantage b. transnational strategy c. absolute advantage d. local content requirement e. multidomestic strategy

Explanation:

The question is about international trade theory. A comparative advantage is when a nation can produce a good or service relatively more efficiently (lower opportunity cost) compared to other nations. Absolute advantage is about being more efficient in absolute terms, transnational strategy and multidomestic strategy are business strategies, and local content requirement is a trade regulation. So the correct term here is comparative advantage.

Answer:

A. comparative advantage