Answer the following statements true (T) or false (F)
1.The product life cycle theory predicts that patterns of comparative advantage change over time. A country that initially exports a product to other countries tends to become a net importer of the product.
2.A change in factor endowments tends to have a similar impact on a production possibilities frontier as a change in technology.
1.True
2.True
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Which of the following is the best example of the control objective in the revenue cycle that all transactions are recorded accurately?
a. Sales are recorded at the invoice price expected to be collected from customers. b. Sales orders have sequential numbering. c. Recorded sales transactions are evidenced by valid invoices and shipping documents. d. Credits to customer accounts are classified as liabilities.
_____________ managers not only meet the minimum legal standards but are proactive in presenting ethical leadership to the firm’s employees and other stakeholders.
a. Emoral b. Immoral c. Amoral d. Moral
Which of the following rules is CORRECT for capital budgeting analysis?
A. The interest paid on funds borrowed to finance a project must be included in estimates of the project's cash flows. B. Only incremental cash flows, which are the cash flows that would result if a project is accepted, are relevant when making accept/reject decisions for capital budgeting projects. C. Sunk costs are not included in the annual cash flows, but they must be deducted from the PV of the project's other costs when reaching the accept/reject decision. D. A proposed project's estimated net income as determined by the firm's accountants, using generally accepted accounting principles (GAAP), is discounted at the WACC, and if the PV of this income stream exceeds the project's cost, the project should be accepted. E. If a product is competitive with some of the firm's other products, this fact should be incorporated into the estimate of the relevant cash flows. However, if the new product is complementary to some of the firm's other products, this fact need not be reflected in the analysis.
Ethan observes that his subordinate, Nate, is performing and acting like the other members of the unit. He is observing
A. consistency. B. distinctiveness. C. explicit factors. D. implicit factors. E. consensus.