Author Question: The significance of the economic dimension of a business environment is highlighted when a number of ... (Read 78 times)

Medesa · **on:** Jul 14, 2018

The significance of the economic dimension of a business environment is highlighted when a number of states-from Alabama to Nevada-make their local economies even more appealing by providing special tax deals to attract new firms.

Indicate whether the statement is true or false

Question 2

What does it mean for a country to have an absolute advantage? Compare that to having a comparative advantage.

okolip · **Reply #1 on:** Jul 14, 2018

Answer to Question 1

True

Answer to Question 2

When a country has an absolute advantage, that country has the ability to produce a specific product more efficiently than every other nation. A comparative advantage occurs when a nation has the ability to produce a specific product more efficiently than all other products. Every country has a comparative advantage in some product while it is not true that every country has an absolute advantage over every other country.