It Is Sometimes Difficult to Transfer the Advanced Technologies of the Industrialized

question 3

Multiple Choice

It is sometimes difficult to transfer the advanced technologies of the industrialized nations to the DVCs because

• A) the technologies of the IACs are frequently based on relatively expensive labor and relatively abundant capital.
• B) the resource endowments of the IACs and the DVCs are highly similar.
• C) international patent laws prohibit such transfers.
• D) the technologies of the IACs are frequently based on relatively cheap labor and relatively expensive capital.

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Definitions:

External Benefits

Positive effects experienced by third parties or the society at large due to an economic transaction they were not directly involved in.

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product.

Subsidizing Consumers

Directing government funds to reduce the price paid by consumers for goods or services, aiming to encourage consumption or support specific sectors.