Suppose a firm is considering locating a manufacturing facility in a poorer country where wage rates are much lower than in the United States
Why would social capital be a factor in their decision to relocate? Explain in terms of the impact that a lack of social capital may have on the marginal revenue product
Social capital refers to the infrastructure of a particular region or country. If the country in question has inadequate social infrastructure like poor roads or schools then it might not be a good decision to relocate because the firms' workers will have a hard time getting to work and won't be as well educated because of the lack of good schools.
You might also like to view...
In the United States in 2014, the percentage of people without any form of health insurance was about
A) 10%. B) 29%. C) 64%. D) 83%.
Screening refers to
a. private schools selecting only the students who are easiest to teach b. employers requiring a high-school diploma as a way of rejecting unqualified applicants c. governments deciding who should receive health care d. universities using standardized testing to decide who should enter e. none of the above
If the money wealth, interest rate, and international effects reduce the quantity of aggregate demand by 3 percent when the price rises by 6 percent and the multiplier is 2, then the slope of the aggregate demand curve is:
A. ?3. B. ?2. C. ?1. D. ?1/2.
If gas prices today were $2.00 per gallon, in terms of history, this would be
A. not an all-time high but rather high in inflation-adjusted terms. B. an all-time high in nominal terms. C. about the long-inflation-adjusted term historical average in inflation-adjusted terms. D. an all-time high in inflation-adjusted terms.