Which of the Following Is a "Trade Cost" That Firms

question 23

Multiple Choice

Which of the following is a "trade cost" that firms need
To consider when making offshoring decisions?

• A)higher prices of utilities (electricity, fuel) in other countries
• B)higher costs of construction of a plant in other countries
• C)higher costs associated with poor communication and transportation
• D)None of these is a "trade cost."

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Definitions:

Instrumental Conditioning

A learning process in which behavior is modified by the consequences of actions, focusing on the use of rewards and punishments.

Positive Outcomes

Favorable results or benefits resulting from particular actions, behaviors, or interventions.

Instrumental Conditioning

A learning process wherein behavior is modified by the consequences of the behavior, with reinforcement used to increase desirable behaviors and punishment to decrease undesirable ones.

Classical Conditioning

The process of acquiring knowledge by forming connections between a stimulus found in the surroundings and one that arises on its own, which leads to the development of a learned reaction.