When Does It Become More Desirable to Shift More Activities

question 88

Multiple Choice

When does it become more desirable to shift more activities in the value chain abroad?

• A) when the wage of unskilled workers increases abroad
• B) when trade costs decline
• C) when the wage of skilled workers decreases at home
• D) when the price of the final output rises

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Definitions:

Decision Making

The process of selecting a course of action from multiple alternatives to achieve a desired outcome.

Preferred Course

Typically refers to a course or subject that an individual chooses to study, based on interest, goals, or requirements for a career or academic path.

Implementing Solution

The process of putting into action or executing a plan or solution to address a specific problem or challenge.

Behavioural Decision Model

Describes decision‐making with limited information and bounded rationality.