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The Theory of Multinational Enterprise Is Totally Inconsistent with the Principle

question 77

True/False

The theory of multinational enterprise is totally inconsistent with the principle of comparative advantage.


Definitions:

Derived Demand

The demand for a good or service that arises from the demand for another good or service; for example, the demand for steel is derived from the demand for automobiles.

Wage Rate

The amount of money a worker is paid per unit of time, such as an hour or a month.

Marginal Physical Product

The additional output resulting from one more unit of a specific input, assuming all other inputs remain constant.

Marginal Revenue Product

Marginal revenue product measures the additional revenue generated by employing one more unit of input, commonly used to analyze labor and capital contributions.

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