Answer:
<h2>The United States has the comparative advantage in car production.</h2>
Explanation:
- Japan has a lower opportunity cost of producing televisions compared to cars, implying that Japan basically has to give up or sacrifice or trade off relatively less number of cars to produce one more television compared to the production of one more car.
- Alternatively, US has a lower opportunity cost of producing cars relative to televisions meaning that US has to give up, sacrifice or trade off less number of televisions to manufacture one more car in comparison to the production of one more television.
- Hence, in this case,US has a comparative advantage in the production of cars and Japan has a comparative advantage in production of television and both countries can produce these respective commodities by using relatively less productive resources or factor inputs.
Answer:
The correct answers to fill the blank spaces are not be; small
Explanation:
If a currency's spot market is liquid, its exchange rate will not be highly sensitive to a single large purchase or sale of the currency. Therefore, the change in the equilibrium exchange rate will be relatively small.
Answer:
The correct answer is letter "B": product extension.
Explanation:
In International Business, product extension refers to the approach by which a firm introduces its product or service across borders without shaping the product according to the profile of each consumer in each region. Product extension is implemented to expand the business operations of a firm in an attempt of finding new consumers in new markets, thus, generating more profit.
<em>Product extension is likely to work only if customers' preferences and necessities are the same in different countries.</em>
B. underperform those who hold investments for the long term and trade infrequently.
Research indicates that investors who closely monitor their portfolios and trade quickly in response to minor fluctuations in price underperform those who hold investments for the long term and trade infrequently.
<h3>Why do investors underperform?</h3>
Market timing is the first explanation. Individual investors attempt to decide whether to invest in stocks and when to withdraw funds from them. Despite the fact that we are aware of the market's unpredictability, investors frequently invest during bull markets and exit during down markets. This is seen in the money flows into and out of mutual funds during stock market extremes. Your return will be negatively impacted if you buy high and sell low.
The fees that investors spend are the second factor contributing to their poor market performance. The majority of investors are unaware of their costs and don't care. They fail to understand how a few dollars here and there could possibly make a difference. They believe the fees and charges don't exist since they can't see them.
Learn more about investors here:
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