What is the nature of the proximity-concentration tradeoff that firms have to deal with then making decisions regarding foreign direct investment?
What will be an ideal response?
If the firm has numerous production facilities close to their various international markets, trade costs will be relatively low. However, when there are numerous production facilities, each will be relatively small, and opportunities for economies of scale will be foregone.
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Cutting the money supply by one-third is predicted by the quantity theory of money to cause
A) a sharp decline in real output of one-third in the short run, and a fall in the price level by one-third in the long run. B) a decline in real output by one-third. C) a decline in output by one-sixth, and a decline in the price level of one-sixth. D) a decline in the price level by one-third.
Use the following data to calculate equilibrium real GDP: C= .75Y, I = $2 trillion, G=$1 trillion and NX = -$0.5 trillion
What will be an ideal response?
According to the graph shown, if the market goes from equilibrium to having its price set at $10:
A. market transactions will decrease by 7.
B. market transactions will decrease by 3.
C. market transactions will decrease by 10.
D. market transactions will not change, only price has changed.
When pollution problems arise from a sudden crisis, pollution taxes are a useful form of control
a. True b. False Indicate whether the statement is true or false