One of the Earliest, and Still One of the Most

question 2

Multiple Choice

One of the earliest, and still one of the most powerful, motivations for U.S. companies to invest abroad relates to ____: obtaining raw materials, labor, and other resources at the lowest possible cost.

• A) factors of production
• B) economies of scope
• C) economies of scale
• D) technological factors

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Definitions:

Goods and Services

Represents the output of an economy, where goods are physical items and services are activities provided by others for benefit or pleasure.

MRP

In economics, Marginal Revenue Product is the additional revenue generated by employing one more unit of a resource.

Market Wage Rate

The prevailing pay scale for work performed in a specific industry or occupation in a geographical area.

Hiring Labor

The process of employing people to perform work or services for wages or salary.