A Temporary Resource Price Differential Refers to a Price Difference

question 162

Multiple Choice

A temporary resource price differential refers to a price difference

• A)that will not lead to a shift of resources among users
• B)caused by lack of resource mobility
• C)caused by economic rent
• D)that, for example, causes more workers to move to higher-paid areas
• E)caused by minimum wage legislation

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Definitions:

Market Exposure

The extent to which a company or an investment is exposed to fluctuations in the values of its markets, potentially affecting its profitability.

Ethnocentric Staffing Model

A staffing approach used by multinational companies where key management positions are filled by personnel from the home country.

Subsidiaries

Companies that are owned or controlled by another company, often referred to as the parent company.

Upper-Management Positions

Roles within an organization that involve high-level decision-making responsibilities and oversight of the company or its major departments.