The product life cycle theory predicts that comparative advantage shifts away from the country of origin if:
a. the product is introduced in many countries simultaneously.
b. the product is highly demanded in international markets.
c. the demand for the product drastically declines in the domestic market of the country where it was invented.
d. other countries have lower manufacturing costs using the now-standardized technology.
e. other countries develop highly skilled labor forces to improve product quality.
d
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If a country imposes a $10 tariff on a foreign monopolist, the price received by the monopolist, net of the tariff, will:
a. fall by $10. b. fall by less than $10. c. fall by more than $10. d. fall by $0.
Refer to above figure. If OmL1 workers are employed in manufacturing then what is the marginal productivity of labor in manufacturing?
What will be an ideal response?