What Is a Consequence of Increasing Marginal Costs of Producing

question 45

Multiple Choice

What is a consequence of increasing marginal costs of producing digital music players in Japan?

• A)Japan will not export digital music players.
• B)Japan will stop short of complete specialisation in the production of digital music players.
• C)Japan will import digital music players from countries that don't experience increasing marginal costs.
• D)Japan will likely impose trade restrictions on imported digital music players.

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Definitions:

Nationalize

The transfer of private sector assets into public ownership by the government.

Foreign Firms

Companies that are based in one country but conduct business operations in other countries.

Payment

The transfer of money or goods from one party to another as compensation or in exchange for goods or services.

New York Convention

An international treaty designed to facilitate the recognition and enforcement of foreign arbitral awards.