European Union labor costs exceed U.S. and British labor costs primarily because
a. worker productivity is lower in the EU
b. union wages are higher in the EU
c. layoffs and plant closings are more restrictive in the U.S. and Britain
d. the amount of paid time off is higher in the EU
e. labor-management relations are better in the EU
Question 2
An international producer is trying to centralize its R&D. This is consistent with it trying to
a. Set up a functional division
b. Take advantage of the economies of scale
c. Take advantage of the learning curve effect
d. All of the above
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