In the Circular Flow Model, Who Is a Seller in the Factor

question 3

Multiple Choice

In the circular flow model, who is a seller in the factor markets and a buyer in the product markets?

• A) Businesses.
• B) Transnational corporations.
• C) Foreign producers who export final goods and services into the U.S.
• D) Households.

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Definitions:

Locally Responsive

An approach or strategy where a company adjusts its products, services, and practices to better align with local buyer preferences and market conditions.

Knowledge Transfer

The process through which skills, knowledge, technologies, or methodologies are passed from one individual or organization to another.

Transnational Strategy

A global business approach that involves operating in multiple countries with a coordinated strategy, balancing global efficiency and local responsiveness.

Locally Responsive

Being locally responsive refers to a business strategy that involves tailoring products, services, and operations to meet the cultural, legal, and consumer preferences of local markets.