Recall the Application about how worldwide trade has affected the U.S. auto industry to answer the following question(s). According to this Application, why are car companies in the U.S. finding themselves using more foreign made auto parts?
A. lower wages abroad
B. foreign made parts are more durable
C. shipping costs have risen
D. American politicians force companies to do this in order to make our allies happy
Answer: A
You might also like to view...
The first discussion of comparative advantage appears in a book written by
A) Paul Samuelson. B) David Ricardo. C) David Portugal. D) Adam Smith.
If all my savings are invested in my consulting company, an increase in the interest rate increases my implicit costs
a. True b. False
"Tax cuts, by providing incentives to work, save, and invest, will raise employment and lower the price level." This argument is made by the:
a. Keynesian economists. b. supply-side economists. c. classical economists. d. monetarists.
In situations where businesses who choose to discriminate because they are prejudiced are few in an industry, discrimination:
A. will persist in an efficient market. B. will be eliminated by the competitive market. C. will persist because customers will not give them patronage. D. None of these is true.