"One country manufactures goods at a lower cost in terms of foregone resources than another" is the basic idea of ____.

In the USA, the production of 1 airplane has an opportunity cost of 2 tons of shoes.

For China, the production of 1 airplane means the country has to give up producing 8 tons of shoes.

Which country has a comparative advantage in airplane production?

Opening to trade driven by comparative advantage leads to ___.

According to Heckscher-Ohlin, ____ is the drive behind trade.

Which of the following is chance events in Porter's Diamond model?

In Germany, there are many car manufacturers (Audi, Mercedes Benz, BMW, etc.)

They compete intensely and keep developing more innovative and quality products.

Today, Germany is a key player in the automobile industry as it satifies the ____ factor in Porter's Diamond model.

During the 2000s, value added by ___ activities is highest in the global value chain.

Instead of specializing in production of a complete product, firms (and countries) can specialize in much narrower activities, like production of a particular component or a service like R&D.

This is the concept of "____".

GVCs are complex, interlinked networks of economic activity, such as ___.