According to Vernon, Which of the Following Influences the Movement

question 94

Multiple Choice

According to Vernon, which of the following influences the movement of the locus of global production from advanced countries to developing countries?

• A)Cost considerations
• B)Factor endowments
• C)Domestic competition
• D)Supporting industries
• E)Firm structure

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Definitions:

Substitute

A product or service that can be used in place of another to satisfy similar needs or demands.

Industry Entry

The process of a new competitor or business entering into a market or industry.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices at a given time.

Long Run

That period of time for which there are no fixed factors of production: Firms can increase or decrease the scale of operation, and new firms can enter and/or existing firms can exit the industry.