The Growth of Export Industries ________ the Exporting Country

question 101

Multiple Choice

The growth of export industries ________ the exporting country.

• A)reduces imports in
• B)leads to easy access to low-cost labor in
• C)creates local jobs in
• D)provides access to a larger pool of financial resources for
• E)leads to an excess supply of products in

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Definitions:

Fixed Overhead

Costs that do not change with the level of output, including rent, salaries, and insurance premiums.

Administrative Costs

Expenses that are not directly tied to production or sales, such as office expenses, salaries of administrative personnel, and legal fees.

Incremental Income

The additional income that is generated as a result of a specific business decision or activity.

Incremental Costs

Additional costs associated with producing one extra unit of a product or delivering an additional service.