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Author Question: Suppose a firm is considering locating a manufacturing facility in a poorer country where wage rates ... (Read 46 times)

danielfitts88

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on: Jun 29, 2018
Suppose a firm is considering locating a manufacturing facility in a poorer country where wage rates are much lower than in the United States.
 
  Why would social capital be a factor in their decision to relocate? Explain in terms of the impact that a lack of social capital may have on the marginal revenue product

Question 2

Typically, a bank's largest asset is its
 
  A) holdings of securities. B) loans.
  C) reserves. D) deposits of its customers.


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raenoj

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Reply #1 on: Jun 29, 2018
Answer to Question 1

Social capital refers to the infrastructure of a particular region or country. If the country in question has inadequate social infrastructure like poor roads or schools then it might not be a good decision to relocate because the firms' workers will have a hard time getting to work and won't be as well educated because of the lack of good schools.

Answer to Question 2

B


danielfitts88

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

milbourne11

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Reply 3 on: Yesterday
Excellent

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