.
Businesses and corporations relocate to developing nations so they
don't have to pay the wages that developed nations pay their workers.
Many of these nations do not have the same regulations in regards to
workers' rights, benefits, safety, and environmental impact. Because
companies aren't subject to these regulations, they are able to save
millions of dollars. As a result, businesses shut down operations in the
U.S. and other developed nations and move those jobs abroad.
The interest rate will also increase and firms will want to borrow less for new plants and gear and households will want to borrow less for homebuilding. And in addtion to that interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.
Answer:
Placebo effect
Explanation:
Placebo effect occurs when an individual starts to show positive response to an inactive substance after being told the substance has powers to cure.
The person's mind subconsciously helps him heal or perform better on the false belief that the substance is effective.
In the given scenario Jeanne labelled decaffeinated coffee as caffeinated coffee. On consumption her co-workers claimed that the extra boost of caffeine helped them focus on their work.
This is a placebo effect.
The devision agrees a transfer price between themselves. This price may not reflect opportunity cost by producing and selling products. Reflects bargaining prowess of individual mangers.
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