Question

Which of the following correctly describe how the concept of international competitiveness applies to a nation? Check all that apply.
a. Some firms reach an absolute advantage in producing a good, which earns an absolute advantage for the nation.
b. The competitiveness of a firm of or industry depends on the relative prices and qualities of its products.
c. Competitiveness refers to the extent to which the goods of a firm or industry can compete in the marketplace.

Answer 1

Answer:

The correct answers are letters "A", "B", and "C".

Explanation:

International Competitiveness refers to the ability a country has to produce goods and services to remain competitive in the market. To accomplish that, prices and the quality of the products offered must be aligned with what other countries are producing or even better. If countries can specialize in providing one good or service only, they are likely to gain an absolute advantage. This does not imply the country will be a pure exporter since imports are also vital for the transformation and optimization of the economy.