An Automobile Company Has Two Factories, One in Vietnam and One

question 42

Multiple Choice

An automobile company has two factories, one in Vietnam and one in Australia each with the same number of workers. The Vietnamese factory can produce either 150 engines or 100 transmissions per day. The Australian factory can produce either 100 engines or 75 transmissions per day.

• A)The Vietnamese factory has an comparative advantage producing both engines and transmissions.
• B)The Australian factory has an absolute advantage in the production of transmissions.
• C)The Vietnamese factory has a comparative advantage in the production of transmissions.
• D)The Australian factory has a comparative advantage in the production of transmissions.

---

Definitions:

Downward Feedback Method

A process of communication where supervisors or managers provide feedback to their subordinates to help them improve their performance.

Career-counseling Program

A guidance service aimed at helping individuals understand their skills, career goals, and market trends to make informed career decisions and transitions.

Contextual Performance

The aspects of an individual’s behavior that contribute to the organizational or social aspects of the job, beyond the technical requirements.

Horns Error

A horns error occurs when the manager downgrades other aspects of an employee’s performance because of a single performance dimension.