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If country A, can produce both cheese and chocolate, the country must determine how
much labour goes into producing each good. If it takes one of labour to produce 10
units of cheese and one of labour to produce 20 units of chocolate. Then this country
has………………….
a.
An absolute advantage in producing cheese
b.
An absolute advantage in producing chocolate
c.
A comparative advantage in producing cheese
d. A comparative advantage in producing chocolate
Question text
Due to low labour costs and Chinese manufacturers' capabilities and competences in
manufacturing processes, Apple, an American firm, has chosen to relocate its non-core
operations, such as manufacturing, to China. This is referred to as…………..
a.
Reshoring
b.
Nearshoring
c. Offshore outsourcing
d.
Business process outsourcing
Question text
Protectionism is when policies are designed to act as ……………………
, PASSMATETUTORIALS passmatetutorials@gmail.com
a. barriers to international trade
b.
promoting local production
c.
discouraging exports
d.
promoting imports
Question text
A multinational enterprise is defined as an enterprise that ……………………
a.
Has sales in more than one country
b. Has subsidiaries in more than one country
c.
Has employees from more than one country
d.
Is buying components in more than one country
Question text
Assets specificity refers to investments that are ……………………
a. Specific to a business relationship
b.
Specific to a business function
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