The inability of a company to gain foreign production factors to use in its domestic operations most likely ________.
A)entices the company to export its own production factors
B)stimulates the company to adopt efficient substitute methods of production
C)stimulates foreign companies to invest in that domestic market
D)causes the company's products to move more rapidly through their life cycles

Question

Quizplus · Accepted Answer

When a company is unable to gain foreign production factors, it is likely to explore alternative methods to ensure efficient production using domestic resources. This can involve adopting new technologies, improving operational processes or investing in research to create innovative methods of production that do not rely on foreign inputs. This can lead to increased efficiency and competitiveness in the long run. Options A, C and D are not likely outcomes of such a scenario.

The Inability of a Company to Gain Foreign Production Factors