You Run a Small Company That Manufactures Plastic Injection Molded

question 34

Essay

You run a small company that manufactures plastic injection molded pieces for the construction industry.Currently,you manufacture your product in Windsor,Ontario and a small plant in Texas.You sell your products in both Canada and the United States.You are aware that NAFTA presented your company with increased access to the American market.You want to expand,and are aware of something called the "European Union",but are unsure of what it means,whether Canada can join (or has joined)and what your firm can do to get access to this large market.You are also interested to know whether there are other "groups of countries like NAFTA or the EU" out there.
What are the primary impediments to integration of countries? Are these impediments difficult to overcome?

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Definitions:

Marginal Revenue Product Curve

A graph that illustrates the additional revenue generated from employing one more unit of a resource.

Variable Input

relates to a production factor that can be adjusted in the short term to change the level of output, such as labor or raw materials.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor, such as labor, in the production process.

Competitive Industry

A competitive industry is characterized by many firms competing against each other to sell similar or identical products, with few barriers to entry for new firms.