Regarding Political Forces and Their Impact on Standardization of Global

question 40

Multiple Choice

Regarding political forces and their impact on standardization of global operations,which of the following is not true,according to the text?

• A) Although the country desperately needs new job creation, which favors labor-intensive processes, government officials in developing countries often insist that the most modern equipment be installed.
• B) Officials in developing countries often believe that only a factory with advanced technology can compete in world markets.
• C) Some developing countries, fearing dependence on industrialized nations, have laws prohibiting the importation of new machinery.
• D) Officials in developing countries often feel that low-productivity technology will keep the country dependent on the industrialized countries.

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Definitions:

Fixed Resource

An asset or resource in production that cannot be easily increased or decreased in the short term, such as land or machinery.

Diminishing Returns

The principle that says as more of a variable input is added to a fixed input, the incremental gain in output will eventually decrease.

Normal Profits

The level of profit that is necessary to cover the costs of a firm, including the opportunity costs of capital, ensuring the firm remains in business.

Implicit Cost

The opportunity cost equal to what a firm must give up in order to use resources it already owns, without paying rent or purchasing them.