A source of improvement in the capabilities of a foreign factory can be the increasing abundance of advanced factors of production in the nation where the factory is located.

Question

Quizplus · Accepted Answer

If there is greater availability of advanced factors of production, such as skilled labor, technology or access to capital, the foreign factory can benefit from them and improve its capabilities. This can result in higher productivity, better quality, and increased competitiveness in the international market. Therefore, an increasing abundance of advanced factors of production in the host nation can be a source of improvement for a foreign factory.

A Source of Improvement in the Capabilities of a Foreign