If the Wages and Productivity of U

question 95

Multiple Choice

If the wages and productivity of U.S. workers are higher than those of Mexican workers, a Japanese company would:

• A) build a plant in the United States.
• B) build a plant in Mexico.
• C) be indifferent about where the plant is built.
• D) require more information before deciding where the plant is built.

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Definitions:

Capturing

The act of taking control of or obtaining something through force or strategy.

Drive-Reduction

A motivational theory suggesting that behavior is an attempt to reduce drives caused by needs or stress, restoring a state of balance.

Instinct

A natural and usually unchangeable behavior pattern in animals triggered by specific signals.

Cognitive

Relating to, being, or involving conscious intellectual activity such as thinking, reasoning, or remembering.