Competitors and supply chain is an element of economic forces.
<h3>What are economic forces?</h3>
Economic forces are those factors that assist a firm in terms of its competitiveness in the environment it operates.
Here, economic forces have a direct impact on business and are essential factors that can help an organization in accomplishing its targets.
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The correct answer to this open question is the following.
The statement, if true, that would explain the analysts' predictions would be "the Producer Price Index has been steadily increasing over the past few months."
That is what would have been the factor that supports the forecast. Although inflation has been constant at low levels, what changed was the Producer Price Index that is moving up. This factor could modify the results despite inflation is stable at this moment. When inflation is high, it directly affects the price of goods and the consumer.
For a typical business firm, as production continues to expand marginal cost will increase due to the use of less productive resources.
<h3>What is law of diminishing marginal productivity?</h3>
The law of diminishing marginal productivity states that as the unit of a good produced by using more variable input units alongside a certain amount of fixed inputs increases, the total output may grow at a faster rate initially, then at a steady rate, and then starts decreasing or diminishing as the units of good produced increases.
<h3>What is marginal cost?</h3>
Marginal cost can be defined as the additional amount of money that is paid by a business firm from the production of an additional unit of a good or service.
In conclusion, as production continues to expand for a typical business firm, marginal cost will increase due to the use of less productive resources in accordance with the law of diminishing marginal productivity.
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Answer:
Foreign Direct Investment - Opening a retail store in a foreign country
Foreign Portfolio Investment - Buying bonds issued by a foreign government
false
Explanation:
Foreign direct investment can be described as when a firm or an individual in one country makes an investment in a business interest in another country.
Foreign direct investment usually takes two form :
- the investor sets up a business in the foreign country
- the investor acquires foreign assets in the foreign country.
An example is when a US firm establishes a new business in another country.
foreign direct investment usually requires a lot of active management. As a result, an individual might not have the capacity or resources to effectively manage an FDI when compared with a corporation
Foreign Portfolio Investment is when an investor in one country purchases financial assets in another country.
For example, a resident of the US purchases bonds in Ghana
