Which of the Following Factors Is Not a Mandate Toward

question 27

Multiple Choice

Which of the following factors is not a mandate toward globalization for many U.S.businesses?

• A) Improvements in transportation and shipping have lowered shipping costs worldwide.
• B) Political clout of consumers has tended to erode barriers designed to protect inefficient manufacturing in other countries.
• C) With development costs rising,firms must increase unit sales outside the United States to remain competitive.
• D) Firms must be able to produce where costs are lowest.
• E) All of the above are factors.

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Definitions:

Comparative Advantage

The ability of an entity to produce a good or offer a service at a lower opportunity cost than others, leading to more efficient trade.

Opportunity Cost

The value of the next best alternative forgone as a result of making a decision to pursue a certain action.

Absolute Advantage

The ability of an entity to produce more of a good or service with the same amount of resources, or the same amount of a good or service with fewer resources, than competitors.

Opportunity Cost

The cost associated with not pursuing an alternative option when a decision is made, reflecting the trade-offs inherent in decision-making.