What is it called when competing companies locate next to each other? Why do they do this?
What will be an ideal response?
It is called clustering. In many cases, this occurs because of a critical mass of information, talent, venture capital, or natural resources. Alternately, clustering occurs because several firms close together create a larger total market than the same firms separated.
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Sunlight Company has assets and equity that amount to $200,000 and $90,000, respectively. Liabilities total ________
A) $90,000 B) $110,000 C) $200,000 D) $290,000
When a country can produce a larger amount of a good or service for the same amount of inputs as another country or when it can produce the same amount of a good or service using fewer inputs than another country is known as the theory of:
a. absolute advantage b. comparative advantage c. resource endowment d. Both 1 and 3.