When the Country of Matu Trades with the Country of Balor

Multiple Choice

When the country of Matu trades with the country of Balor, Matu experiences a gain because of the high costs of its products while Balor experiences a loss because it is trading small amounts of products that cost very little. Which characteristic of the mercantilist theory does this reflect?

A) factor endowments
B) first-mover advantage
C) zero-sum game
D) late-mover advantage
E) comparative advantage