Recall the Application about U.S. candy manufacturers shifting production to Mexico and other countries
due to high sugar prices in the U.S. to answer the following question(s) . According to the Application, the
U.S. government protects the domestic sugar industry from foreign competition by restricting sugar
imports, keeping the price of sugar in the U.S. artificially high. In 2003, the cost of sugar was $0.06 per
pound in Mexico and $0.21 per pound in the U.S.
-According to this Application, when domestic candy manufacturers shift production to other countries, they are
A) importing their production.
B) outsourcing their production.
C) enforcing rules of exchange.
D) facilitating the exportation of public goods.
Correct Answer:
Verified
Q32: An export is a product
A) produced in
Q40: Trade results from
A) comparative advantage.
B) absolute advantage.
C)
Q41: The principles of comparative advantage and specialization
Q46: Consider two individuals, Celia and Sondra,
Q47: Recall the Application about U.S. candy manufacturers
Q48: Summary of the article:
Tribune to cut, outsource
Q48: The cost savings from outsourcing often lead
Q53: Imports are products produced in the home
Q55: Summary of the article:
Tribune to cut, outsource
Q60: Exports are products produced in the home
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