The two sources of improvement in the capabilities of a foreign factory are:
A) the increasing abundance of advanced factors of production in the nation in which the factory is located and pressure from the centre to improve a factory's cost structure and/or customize a product to the demands of consumers in a particular nation can start a chain of events that ultimately leads to development of additional capabilities at that factory
B) the increasing abundance of advanced factors of production in the nation in which the factory is located and the large amount of skilled workers in the area of which the factory is located
C) pressure from the centre to improve a factory's cost structure and/or customize a product to the demands of consumers in a particular nation can start a chain of events that ultimately leads to development of additional capabilities at that factory and increasing government regulations that benefit the factory
D) the large amount of skilled workers in the area of which the factory is located and increasing government regulations that benefit the factory
E) productivity improvements leads to excess manufacturing capacity that can be used elsewhere and increasing expertise of workers due to learning effects
Correct Answer:
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