If a Value Creation Activity of a Firm Can Take

question 23

Multiple Choice

If a value creation activity of a firm can take place in Mexico most effectively, then that activity of the firm must be based in Mexico. Firms that pursue such a strategy are most likely to realize:

• A)a position inside the efficiency frontier.
• B)the experience curve.
• C)economies of scale.
• D)location economies.
• E)demographic advantages.

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Definitions:

Property Income

Earnings derived from property ownership, such as rents, interest on loans, and dividends from investments.

Personal Income

The total income received by individuals, including wages, salaries, government benefits, and income from investments.

Wage Supplements

Additional financial benefits provided to employees on top of their regular wages, which could include bonuses, health insurance, or retirement benefits.

Personal Income

The total earnings of an individual from wages, investment interests, and other sources before any deductions or taxes.