Which of the Following Is Not Considered a Reason for Foreign

question 17

Multiple Choice

Which of the following is not considered a reason for foreign firms to locate in Canada?

• A)Decreased delivery time to Canadian customers
• B)Access to Canadian natural resources
• C)Canadian workers are well educated
• D)Political stability
• E)Lack of government involvement in location decisions

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Definitions:

Entrepreneurs

Individuals who, rather than working as employees, run a business and assume all the risks and rewards of a given business venture, idea, or good or service offered for sale.

Allocative Efficiency

A state of resource distribution where resources are allocated in a way that maximizes the total benefit received by all members of society.

Purely Competitive Industry

An industry characterized by many small firms producing identical products, where no single firm can influence the market price.

Demand

The volume of goods or services that consumers are prepared and financially able to buy at a range of prices within a set period.