The premise that there will be more finely tuned specialization of production among countries is most likely based on the idea that companies will ________.
A)depend more on production of nontradable goods and services
B)encourage urbanization in emerging countries that lack infrastructure
C)establish facilities in dispersed locations to hinder domestic competition
D)take advantage of wage and skill differences among countries

Question

Quizplus · Accepted Answer

The premise of more finely tuned specialization of production among countries suggests that companies will look to take advantage of wage and skill differences among countries to produce goods in the most cost-effective way. This would require a greater level of international trade and investment. Choices A, B, and C do not directly relate to the idea of specialization of production among countries.

The Premise That There Will Be More Finely Tuned Specialization