Which of the Following Factors Is Not a Mandate Toward

question 27

Multiple Choice

Which of the following factors is not a mandate toward globalization for many U.S.businesses?

• A) Improvements in transportation and shipping have lowered shipping costs worldwide.
• B) Political clout of consumers has tended to erode barriers designed to protect inefficient manufacturing in other countries.
• C) With development costs rising,firms must increase unit sales outside the United States to remain competitive.
• D) Firms must be able to produce where costs are lowest.
• E) All of the above are factors.

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Definitions:

Labor

Labor represents the human effort, both physical and mental, used in the production of goods and services.

Total Costs

The total of all costs associated with the production of goods or services, encompassing both fixed and variable expenses.

Conditional Labor Demand

The demand for labor by employers, which is contingent upon certain conditions, such as wage rates or economic environment.

Capital

Refers to wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing.