1. Oil, wheat, minerals, chemicals
2. agriculture, fishing, hunting, trapping, forestry and logging, energy, and mining
3. proximity to raw material sources reduces risk
Subsidiaries are dependent on the parent company for decision-making, which is inefficient
4. restaurants
5. absolute advantage focuses on maximising output
Comparative advantage focuses on opportunity costs
6. another country has a comparative advantage in producing apples, so importing apples from it allows experience to be focused on what the country is better at