Relative to Kenya, Japan Has Relatively Higher Economies of Large-Scale

question 110

Multiple Choice

Relative to Kenya, Japan has relatively higher economies of large-scale production, an abundance of resources, higher labor costs, and more research and development.The Heckscher-Ohlin theory explains Japan's comparative advantage over Kenya as the result of differences in countries'

• A) economies of large-scale production.
• B) relative abundance of various resources.
• C) relative costs of labor.
• D) research and development.

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Definitions:

Public Shareholders

Individuals or entities that own shares of stock in publicly traded companies.

Debt Flotation Costs

Fees and expenses incurred by an issuer of debt when offering new securities to investors.

Capital Structure

The mix of various forms of capital used by a company, including debt and equity, to finance its operations.

Equity

Represents the value that would be returned to a company's shareholders if all of the assets were liquidated and all of the company's debts were paid off.