(Figure: A Firm's Production With and Without Offshoring II) If the world price of components falls, it is likely that:
A) the home country will import more R&D from the foreign country.
B) the foreign country will get more R&D for its components.
C) the home country will produce more R&D and trade it for components.
D) there will be no impact on the home country.
Correct Answer:
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