The Degree of a Factor's Specificity Is Inversely Related to

question 23

Multiple Choice

The degree of a factor's specificity is inversely related to

• A) the mobility of the factor, with more mobile factors having less specificity.
• B) the amount of time required to redeploy the factor to a different industry.
• C) the cost of the factor as a proportion of the long-run total cost of production.
• D) technology differences between two countries, with a less advanced technology resulting in less factor specificity.
• E) factor quality, with lower quality factors having a lower level of specificity.

---

Definitions:

Exchange Rates

The value of one currency expressed in terms of another currency.

Exchange Rate Fluctuations

Variations in the value of one currency relative to another, which can affect the profitability of international investments and trade.

Deferred Payment

A delayed payment agreement which allows the buyer to take possession of goods or services upfront and pay for them at a later date.

Cash Flows

The gross amount of financial inflows and outflows within a company, crucially impacting its liquidity status.