What Did Pietra Rivoli's Study of the Global T-Shirt Market

question 73

Multiple Choice

What did Pietra Rivoli's study of the global T-shirt market reveal?

• A)The T-shirt market did not conform to "race to the bottom" tactics.
• B)Countries that bid the lowest will eventually collapse.
• C)Countries that won the "race to the bottom" centuries ago now have the most successful economies.
• D)Global textiles are a market that has had a strong monopoly in China for centuries.

---

Definitions:

Liquidity Premiums

Additional yield that investors require for holding securities with lower liquidity.

Maturity Risk Premium

The additional interest rate or yield that investors demand to hold longer-maturity debt over shorter-term instruments.

Lenders

Individuals or institutions that provide funds to borrowers under the agreement that the funds will be repaid with interest.

Interest Rate Model

A mathematical model used to forecast future interest rates or to price financial derivatives and manage interest rate risk.