It Is Sometimes Difficult to Transfer the Advanced Technologies of the Industrialized

question 30

Multiple Choice

It is sometimes difficult to transfer the advanced technologies of the industrialized nations to the DVCs because

• A) the technologies of the IACs are frequently based on relatively expensive labor and relatively cheap capital.
• B) the resource endowments of the IACs and the DVCs are highly similar.
• C) international patent laws prohibit such transfers.
• D) the technologies of the IACs are frequently based on relatively cheap labor and relatively expensive capital.

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Definitions:

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Investment in Grub

An allocation of resources into a project or company named Grub, expecting future returns.

Equity Method

An accounting technique used by firms to assess the profits earned through their investments in other companies by recognizing their share of the earnings.

Cost Method

An accounting method used to record investments at their original purchase cost.