A clear conclusion from offshoring debates and analyses is that:
a. If offshoring isn't stopped, some nations are likely to go bankrupt.
b. Tariffs and quotas are needed to protect nations from offshoring's ill effects.
c. Offshoring is often disruptive in the short run and can have significant transition costs.
d. Offshoring lacks any potential to increase a nation's GDP and holds only the potential to keep GDP the same or reduce it.
.C
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Some resources are better suited to produce certain goods than other resources. This fact leads to
A) a linear production possibilities curve. B) inefficiency in the economy. C) the law of increasing additional cost. D) increases in technology.
To say that government intervenes in the economy to promote efficiency is to say that government is attempting to
a. create a more fair distribution of income. b. change the way in which the economic pie is divided. c. enlarge the economic pie. d. All of the above are correct.
Which of the following is not counted in GDP?
A. The services provided by a maid B. The commissions earned by a salesman C. An increase in inventories held by firms D. The change in Social Security payments received by individuals
Refer to Scenario 5.1. The expected value of the undertaking,
A) according to Sarah, is $75,000. B) according to Sarah, is $100,000. C) according to Sarah, is $110,000. D) according to Aline, is $200,000. E) according to Aline, is $100,000.