Which Theory Explains Why the Low Labor Costs of Bangladesh

question 30

Multiple Choice

Which theory explains why the low labor costs of Bangladesh have attracted toy, footwear, and textile manufacturers to develop manufacturing facilities in Bangladesh?

• A) national competitive advantage theory
• B) Heckscher-Ohlin theory
• C) country similarity theory
• D) absolute advantage theory

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Definitions:

Residual Standard Deviation

A statistical measure that quantifies the amount by which an individual data point differs from a predicted value in a regression model.

Beta

A measure of a stock's volatility in relation to the overall market; it indicates how the stock's price moves relative to the market.

Asset Allocation

The strategic division of an investment portfolio across various asset classes, such as stocks, bonds, and cash, to optimize returns and manage risk.

Abnormal Return

A return on an investment that deviates from the expected normal or benchmark return.