Use the Following to Answer Questions

question 85

Multiple Choice

Use the following to answer questions:
Figure: Comparative Advantage
-(Figure: Comparative Advantage) The figure illustrates both the U.S. and Japanese production possibilities frontiers for TVs and wheat. Based on this information, which of the following is TRUE?

• A) The United States has the comparative advantage in the production of TVs.
• B) The United States has the comparative advantage in the production of wheat.
• C) Japan has the comparative advantage in the production of wheat.
• D) Japan has the absolute advantage in the production of TVs.

Recognize the competitive advantages provided by strategic location decisions.

Discern the various location analysis techniques used by service organizations.

Understand how production and transportation costs influence location decisions.

Appreciate the significance of parking and access for service locations over manufacturing.

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Definitions:

Accounting

The systematic process of recording, measuring, and communicating financial information about economic entities.

Recording

The act of documenting financial transactions in the books of accounts as part of the accounting process.

Transactions

Financial events that affect the assets, liabilities, or equity of a company, recorded in its accounting system.

Accounting

The systematic process of recording, measuring, and communicating information about financial transactions.