If a Firm Located in a Country Charges High Prices

question 1

Multiple Choice

If a firm located in a country charges high prices on its exports and earns profits on its export sales, then:

• A)the profit earned by the firm is not considered as a part of the exporting country's GDP.
• B)the firm emerges as a natural monopolist in the long-run.
• C)the high export price enhances the exporting country's terms of trade.
• D)the majority of the gains from international trade accrue to the foreign buyers.

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Definitions:

Emotional Display Rules

Are societal or cultural norms that dictate how, when, and where it is appropriate to express emotions, influencing individual emotional responses in social situations.

Norms

Shared standards, expectations, or rules that guide and constrain behavior within a group, organization, or society.

Emotional Labor

The process of managing and regulating one's emotions to meet the emotional requirements of a job, often involving displaying certain emotions to clients or customers.

Variety of Emotions

The wide range of feelings that humans experience, such as happiness, sadness, anger, fear, and love.