Why Should Managers Have an Understanding of Trade Protectionism

question 44

Multiple Choice

Why should managers have an understanding of trade protectionism?

• A)Trade protectionism targets factor endowments, thus affecting the best country to locate production.
• B)Trade protectionism affects a company's ability to sell abroad and ability to compete at home.
• C)Trade protectionism affects the number of people permitted to practice a specific profession.
• D)Trade protectionism prevents companies' enactment of merger and acquisition agreements.

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Definitions:

Labor Demand Schedule

A tabulation or curve showing the quantity of labor that firms wish to hire at each possible wage rate, displaying the negative relationship between wages and quantity of labor demanded.

Wage Rate

The amount of compensation paid to an employee by an employer in exchange for work performed, typically expressed per hour or year.

Purely Competitive

A market structure characterized by a large number of small firms, homogenous products, and no single firm having control over the market price.

Wage Rate

The amount of money paid to a worker per unit of time, often expressed as an hourly rate or annual salary.