Most firms in the apparel and footwear industries choose to outsource production to countries where labor is abundant (primarily, Southeast Asia and the Caribbean) but those firms do not integrate with their suppliers there. On the other hand, firms in many capital-intensive industries choose to integrate with their suppliers. What would these choices imply for the extent of intra-firm trade across industries? That is, in what industries would a greater proportion of trade occur within firms? Intra-firm trade will be OA. higher in industries with a high degree of vertical FDI OB. higher in labor-intensive industries. OC. higher in industries that rely primarily on outsourcing OD. higher in industries where there is a large level of imports but virtually no exports

Most firms in the apparel and footwear industries choose to outsource production to countries where labor is abundant (primarily, Southeast Asia and the Caribbean) but those firms do not integrate with their suppliers there. On the other hand, firms in many capital-intensive industries choose to integrate with their suppliers. What would these choices imply for the extent of intra-firm trade across industries? That is, in what industries would a greater proportion of trade occur within firms? Intra-firm trade will be OA. higher in industries with a high degree of vertical FDI OB. higher in labor-intensive industries. OC. higher in industries that rely primarily on outsourcing OD. higher in industries where there is a large level of imports but virtually no exports

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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