Which of the Following Statements Is True of the Country

question 30

Multiple Choice

Which of the following statements is true of the country factors that govern international business?

• A) Relative factor costs should be considered when selecting a country for production.
• B) Centralized production is the most suitable method of doing international business.
• C) Exchange rates are not a significant factor that determines the selection of a country.
• D) Decentralized manufacturing is the most suitable method of doing international business.

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Definitions:

Price

The amount of money required to purchase a good or service, determined by factors such as supply and demand.

Market Price

Market price is the current price at which a good or service can be bought or sold in a competitive marketplace.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Short Run

A period in which at least one factor of production is fixed, constraining the ability of a firm to adjust its output levels.