The Key Decision Factors That Pertain to Where an International

question 39

Multiple Choice

The key decision factors that pertain to where an international firm locates its manufacturing facilities can be grouped under three broad headings.These are:

• A)political factors,economic factors and legal factors.
• B)country factors,technological factors and product factors.
• C)product factors,service factors and labour factors.
• D)language factors,cultural factors and transportation factors.

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Definitions:

Long-Run Supply Function

A relationship that shows the quantity of goods a firm is willing and able to produce and supply to the market at different possible prices over a long period, considering all inputs as variable.

Factor Prices

The amounts paid to the factors of production, such as wages for labor, rent for land, and profit for capital.

Production Function

A mathematical framework defining the association between the resources used in production and the output generated.

Factor Prices

The prices paid for the use of factors of production, such as labor, capital, and land, in the production process.