According to Vernon,which of the Following Factors Obviates the Need

question 3

Multiple Choice

According to Vernon,which of the following factors obviates the need for pioneering U.S.firms to look for low-cost production sites in other countries?

• A)The uncertainties and risks inherent in introducing new products are very low.
• B)The demand for most new products tends to be based mainly on price.
• C)U.S.labor costs are relatively low compared to global standards.
• D)Firms can charge relatively high prices for new products.
• E)The production of innovative products in other advanced countries limits the potential for exports from the United States.

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Definitions:

Domestic

Relating to or occurring within a particular country; not foreign or international.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, measuring the benefit consumers receive from a transaction.

Free Trade

The absence of tariffs, duties, or trade barriers that allows for the unrestricted import and export of goods between countries.

Domestic

Pertaining to or produced within a country's borders, often in contrast to foreign or international.