A Crash R&D Program by One Firm Cannot Replicate a Successful

question 108

Multiple Choice

A crash R&D program by one firm cannot replicate a successful technology developed by another firm,when research findings cumulate.This is an example of

• A) social complexity.
• B) physical uniqueness.
• C) path dependency.
• D) causal ambiguity.

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Definitions:

Customs Union

An agreement between two or more countries to remove trade barriers and reduce tariffs among them, and to establish a common external tariff against other countries.

Common External Tariff

A uniform tariff rate adopted by a customs union or common market on imports from countries outside the union.

Free Trade Area

A region where member countries have agreed to reduce or eliminate trade barriers, such as tariffs and quotas, among themselves.

Dumping

The practice wherein an exporter sells products in a foreign state for less than the price charged for the same or comparable goods in the exporter’s home market.