Which of the following is an assumption made by David Ricardo in supporting his claim that comparative advantage creates free trade and supports globalization?
a. The resources used to produce goods can be easily moved from one country to another.
b. Production costs are constant and do not decline with the acquisition of new technology.
c. Workers cannot move from one industry to another.
d. Multinational companies only close when they no longer have comparative advantage.
Answer: B
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Indicate whether the statement is true or false