The product life cycle theory predicts that comparative advantage shifts away from the country of origin if:
a. the product is introduced in many countries simultaneously.
b. the product is highly demanded in international markets.
c. the demand for the product drastically declines in the domestic market of the country where it was invented.
d. other countries have lower manufacturing costs using the now-standardized technology.
e. other countries develop highly skilled labor force to improve product quality.
d
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If the Fed is concerned about inflation, its actions ________ long-term interest rates so that investment ________ and net exports ________
A) lower; increases; decrease B) raise; decreases; decrease C) lower; increases; increase D) raise; increases; increase E) lower; decreases; decrease
Can a firm's average cost be rising if it is greater than the firm's marginal cost? Explain
During the past quarter of a century, which of the following has contributed to the economic growth of China?
a. agricultural reforms adopted in the late 1970s b. low taxes and deregulation in the special economic zones that were established during the 1980s c. the relaxation of restraints on foreign trade and joint ventures d. all of the above
If a firm pays for investment spending out of retained earnings:
A. the firm forgoes interest it could have received. B. current profits are adjusted downward. C. past profits are adjusted downward. D. the interest rate is irrelevant.