The Theory That Explains the Shift of Color TV Sets

question 3

Multiple Choice

The theory that explains the shift of color TV sets production from the United States to Japan and Taiwan is called the _____ theory.

• A)productivity difference
• B)factor abundance
• C)product life cycle
• D)preference
• E)human skills

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Definitions:

Pre-tax Gain

Income generated before any taxes have been applied.

Investment Account

An account held at a financial institution that is used for holding and trading investments such as stocks, bonds, and mutual funds.

Equity Method

An accounting technique used to record investments in other companies, where the investment's value is adjusted based on changes in the investee's equity.

After-tax Gain

The profit remaining after all taxes have been deducted.