10 Questions
What factor of production can the concept of arbitrage be applied to?
Capital
What does arbitrage involve apart from simple trading opportunities?
Taking advantage of price differences
What is an example of arbitrage mentioned in the text?
Borrowing cheap capital to invest in a country with expensive capital
In what way can a firm use arbitrage in the context of borrowing and investing?
Borrowing in a country with expensive capital to fund a project in a country with cheap capital
Can arbitrage only be applied to trading opportunities?
No, it can be applied to any factor of production
What does arbitrage involve apart from simple trading opportunities?
Utilizing any factor of production
In what way can a firm use arbitrage in the context of borrowing and investing?
Borrowing where capital is cheap and investing where capital is expensive
What factor of production can the concept of arbitrage be applied to?
Any factor of production
Can arbitrage only be applied to trading opportunities?
No, it can be applied to any factor of production
What is an example of arbitrage mentioned in the text?
Borrowing anywhere in the world where capital is cheap and using it to fund a project in a country where capital is expensive
Learn about the factors that support the global expansion of multinational companies, including pull factors and the offsetting of negative consequences of domestic effects. Watch the video tutorial to delve into Chapter 3 of multinational company expansion.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
