If a Commodity Raw Material Comes from Africa,gets Refined in Asia,then

question 31

Multiple Choice

If a commodity raw material comes from Africa,gets refined in Asia,then shipped to South America for finishing,and finally transported to the Middle East and then sold around the world-this represents a similar process used for products marketed by:

• A) Exxon.
• B) McDonald's.
• C) Caterpillar.
• D) IKEA.
• E) Sears.

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Definitions:

Opportunity Cost

The act of losing possible benefits from other routes when a single path is chosen.

Trade

The exchange of goods and services between individuals, businesses, or countries, which can be domestic or international in nature.

Corn

A cereal plant that yields large kernels on a cob, used as food for humans and livestock and as a raw material in industry.

Factor Endowments

Refers to the quantity and quality of resources a country or region possesses, such as labor, land, and capital.