Today, few U.S.-based manufacturing firms make their products exclusively in the United States out of entirely U.S.-made parts
Indicate whether the statement is true or false
TRUE
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Value can be added by outsourcing
Indicate whether the statement is true or false
Suppose that a worker in Radioland can produce either 4 radios or 1 television per year, and a worker in Teeveeland can produce either 2 radios or 4 televisions per year. Each nation has 100 workers. Also suppose that each country completely specializes in producing the good in which it has a comparative advantage. If Radioland trades 100 radios to Teeveeland in exchange for 100 televisions each
year, then each country's maximum consumption of new radios and televisions per year will be a. 100 radios, 300 televisions in Radioland and 300 radios, 100 televisions in Teeveeland. b. 300 radios, 100 televisions in Radioland and 100 radios, 300 televisions in Teeveeland. c. 200 radios, 100 televisions in Radioland and 100 radios, 200 televisions in Teeveeland. d. 300 radios, 100 televisions in Radioland and 100 radios, 400 televisions in Teeveeland.
When the expected real rate of interest declines, ceteris paribus, we expect:
a. more investment projects will be undertaken. b. lenders will need to lower their average default rate to maintain their profit margins. c. firms will borrow less and cut back on their investment projects. d. individuals will steer clear of equity markets.
Figure 18.1Refer to Figure 18.1. Mutually beneficial terms of trade between the United States and Canada would be:
A. 1 bicycle for 8 hang gliders. B. 1 hang glider for 3 bicycles. C. 1 hang glider for 1/4 of a bicycle. D. 1 hang glider for 1/2 of a bicycle.