A Firm with a Very Good Product

question 368

Multiple Choice

A firm with a very good product

• A)has a higher cost of signaling (advertising) than does a firm with an inferior product.
• B)has more to gain by signaling (advertising) than does a firm with an inferior product.
• C)does not need to signal (advertise) because the product's quality speaks for itself.
• D)will signal (advertise) effectively if signaling is free.

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Definitions:

North American Free Trade Act (NAFTA)

An agreement that was implemented to remove tariff barriers between the U.S., Canada, and Mexico to encourage economic integration.

Maquiladoras

Factories located in Mexico that import materials and equipment on a duty-free and tariff-free basis for assembly or manufacturing and then re-export the finished product.

Tariffs

Taxes imposed by a government on imported or exported goods to regulate trade, increase revenue, or protect domestic industries.

Advanced HRIS Technologies

Advanced HRIS Technologies refer to sophisticated systems and software solutions used to manage an organization's human resources needs, such as payroll, benefits administration, and employee data.