2. _____________refined the theory of absolute advantage to one of comparative advantage.

1. In modern business competition, winning by focusing strength means that（） A: businesses should be innovative to have competitive advantage. B: businesses should form strategic allies to have competitive advantage. C: businesses should build core competence to have competitive advantage. D: businesses should develop strategic skills to have competitive advantage

中国大学MOOC: comparative advantage urges nations to engage in true free trade and to specialize in area where they have the highest comparative advantage.

Nations will usually produce and export those goods in which they have the greatest comparative advantage, and import those items in which they have the least comparative advantage.

Which of the following about industrial policy is true A: Industrial policy is usually imposed-on industries with economies of scale. B: Industrial policy is usually imposed-on industries without economies of scale. C: Industrial policy could be a source of static comparative advantage rather than dynamic compararive advantage. D: Industrial policy couldbreak the constraints of static comparative advantage and create dynamic comparative advantage.

New technology:( ) A: seldom contributes to competitive advantage or operational<br/>efficiency. B: seldom enables competitive advantage from product/service<br/>differentiation at lower cost. C: frequently enables competitive advantage from product/service<br/>differentiation at lower cost. D: frequently enables competitive advantage from product/service<br/>differentiation, but typically at a higher cost. E: frequently enables operational efficiencies, but seldom enables<br/>competitive advantage.

We have（ ） a cutting edge advantage.

We have（00a0 ） a cutting edge advantage.

7. The benefits of trade can be explained using the economic principles of _______ and _________ advantage.

Opportunities refer to elements in the environment that the business could exploit to its advantage.