By Investing Early in Countries That Are Currently Poor but Are

question 7

Multiple Choice

By investing early in countries that are currently poor but are nevertheless growing rapidly,firms can gain a:

• A)first-mover advantage.
• B)late-mover advantage.
• C)significant advantage.
• D)strategic advantage.

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Definitions:

Farming

The practice of cultivating the land or raising stock, such as crops and livestock, typically for food production.

Diminishing Marginal Product

Diminishing marginal product is an economic principle stating that adding an additional factor of production results in smaller increases in output after a certain point.

Variable Cost

A cost that varies with the level of output or production activity.

Marginal Product

The marginal product is the additional output gained by employing one more unit of input, such as labor, in the production process.