(Figure: a Firm's Production with and Without Offshoring II) If

question 76

Multiple Choice

(Figure: A Firm's Production With and Without Offshoring II) If the relative price of components is cheaper in a foreign country than the home country, then:

• A) it is likely that the home country will offshore the R&D to the foreign country.
• B) it is likely that the foreign country will offshore the components to the home country.
• C) it is likely that the home country will offshore components to the foreign country.
• D) no meaningful exchange is possible between the home and foreign country.