Why has the U.S. declined as the leading industrial nation in the world?
a. American labor has been undercut by lower-priced labor in less-developed nations.
b. The U.S. spends a disproportionate amount of research and development money on the military.
c. The U.S. now competes against the European nations as major suppliers of manufactured goods.
d. The U.S. now competes against Japan as major suppliers of manufactured goods.
e. a, b, c, and d
Question 2
What is the position of multinational corporations (MNCs) in relation to national governments?
a. The unwieldy size of MNCs limits their political maneuverability.
b. MNCs have the ability to make economic decisions independently of the nations in which they operate.
c. MNCs are regulated in all their world-wide operations by the governments of countries where they are headquartered.
d. Because MNCs transfer cutting-edge technology to developing countries, governments in these countries are willing to accommodate them.
e. MNCs are tightly regulated in advanced industrial countries, but not in developing countries.
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