Mercantilism Assignment (Scenario) The final assignment for Daniela Padilla's global business course takes an in-depth look at one of the six classical perspectives that explain the rationale for international trade. Daniela plans to present an argument in favor of mercantilism. She will attempt to convince her classmates that mercantilism leads to national prosperity. Daniela's classmates will be given the opportunity to counter her argument. Which of the following statements strengthens the proposition that free trade is beneficial to nations? Select one: Oa. Unrestricted international trade generally lowers the overall prosperity of poor countries. Ob. Free trade increases the standard of living by reducing consumer expenses. Oc. Unrestricted international trade generally boosts inflation in developed economies. Od. Imported products tend to be more expensive than domestically produced products. 27 27 of 7 Which of the following is true about absolute advantage principle? Select one: Qa. According to this approach, enhanced product specialization adversely affects communal welfare. O b. This is the only approach that can be used to explain why nations attempt to run a trade surplus. O c. This approach explains the process by which firms acquire and retain one or more value-chain activities inside the firm. Od. This approach allows the nation to consume more than it otherwise could, generally at lower cost. 0 10 of 7 Sacramento Cement is expanding into Central and South American markets. by purchasing local cement companies in Brazil, Argentina, and Mexico. These purchases represent what kind of investment? Select one: O a. foreign greenfield investments Ob. non-equity regional expansion Oc. acquisitions Od. foreign contractual agreements n 11 MERCOSUR, an economic bloc in Latin America, is an example of an economic union. d ut of 71 Select one: O True False