Which of the Following Is One Component of the "Trilemma

question 111

Multiple Choice

Which of the following is one component of the "trilemma" that is faced by policy makers in choosing monetary arrangements?

• A) freedom of international capital movements
• B) exchange rate instability
• C) tariffs and subsidies
• D) restrictions on the migration of labor
• E) global inflation

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Definitions:

Location Economies

Cost advantages that a firm obtains by operating in a particular geographical area.

Cost-Leadership Strategy

A business approach focused on gaining a competitive advantage by minimizing costs while maintaining acceptable quality, aiming to offer the lowest prices in the market.

Digital Platform

A technology solution that connects users and providers, facilitating interactions or transactions over the internet.

Global Integration

The process of international interconnection and cooperation, through which businesses and economies around the world become more interdependent.