The Heckscher-Ohlin Theory Suggests That Research and Development Activity Is

question 47

Multiple Choice

The Heckscher-Ohlin theory suggests that research and development activity is most likely to be concentrated in countries which:

• A)are capital-abundant.
• B)are skilled-labor-abundant.
• C)specialize in the production of primary commodities.
• D)are more self-reliant.

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Definitions:

Penetration Pricing

A strategy where a new product is introduced to the market at a low initial price to attract customers quickly and gain market share.

Skimming Pricing

A pricing strategy where a product is initially set at a high price before being gradually lowered to attract different segments of consumers.

Price-insensitive Customers

Consumers who are less affected by price changes and more focused on other factors such as quality, brand loyalty, or unique features.

Prestige Pricing

A pricing strategy where prices are set higher than average to suggest status, exclusivity, and high quality.