When Companies Realized They Could Produce in the Most Efficient

question 58

Multiple Choice

When companies realized they could produce in the most efficient and productive locations in the world and simply export to markets worldwide, a new surge of foreign direct investment flowed into ________.

• A) low-cost newly industrialized nations and emerging markets
• B) highly developed economies
• C) the automobile and computer industries
• D) totalitarian and theocratic nations only

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Definitions:

Marginal Social Benefits

The additional benefit to society as a whole from producing or consuming one more unit of a good or service.

Common Resource

A resource like air or water that is not owned by anyone, but its use is shared among a community or the public, often leading to overuse or depletion.

Private Market

A segment of the economic market where transactions occur between private individuals or organizations without significant government intervention.

Marginal Social Benefit

The additional benefit to society from producing or consuming one more unit of a good or service.