Multiple Choice
If there are increasing returns to scale, then it makes sense to consolidate operations into one production facility
A) if production above domestic demand can be exported.
B) only if the consolidation creates an absolute advantage versus other trading partners.
C) if the government subsidizes production.
D) Never, because then you lose the possibility of comparative advantage gains between the production facilities.
Correct Answer:

Verified
Correct Answer:
Verified
Q29: If a currency such as the US$
Q30: Which of the following can reduce the
Q31: A country uses strategic trade policy to<br>A)increase
Q32: According to the principal of comparative advantage,
Q34: A country that is a member of
Q35: An exchange rate is<br>A)the price of one
Q36: Your U.S.-based company is doing business internationally.
Q37: If a bottle of fine French wine
Q38: A multinational enterprise is defined as a
Q69: The United States and many other countries