Even If Production Costs Are Higher in a Foreign Country

question 40

Multiple Choice

Even if production costs are higher in a foreign country, a U.S. firm may establish a manufacturing plant in the foreign country now if:

• A) the host government of that country eliminates all quotas.
• B) the host government of that country reduces all quotas.
• C) the host government of that country increases all quotas.
• D) the host government of that country eliminates all tariffs.

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Definitions:

Crossing Over

A process during meiosis where two chromosomes pair up and exchange segments of their genetic material to produce recombinant chromosomes.

Chromatids

Each of the two thread-like strands into which a chromosome divides longitudinally during cell division. Each contains a double helix of DNA.

Gamete Production

The process by which male and female sex cells (sperm and ova, respectively) are generated, crucial for sexual reproduction.

Hormones

Regulatory substances produced in an organism and transported in tissue fluids such as blood or sap to stimulate specific cells or tissues into action.