If a fiRm Wants to Gain a Cost Advantage in the Global

question 92

Multiple Choice

If a firm wants to gain a cost advantage in the global marketplace, it must establish its business in a country _____.

• A) that has trade restrictions on imports
• B) where the minimum wage is relatively high
• C) where productivity of labour is high
• D) where the population is very low

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Definitions:

Trade Agreements

Formal arrangements between countries that determine the rules of trade, including tariffs and import quotas.

International Trade

The exchange of goods and services across international borders or territories, involving the import and export of products.

Brazil

The largest country in South America, known for its rich cultural heritage, diverse ecosystems, and significant role in global agriculture and resources.

Global Contender

describes a company or entity that competes on a worldwide scale, often striving for international market leadership in its industry.