SCIENCE
ENVIRONMENTAL SCIENCES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Using labor and developing countries as a way to reduce their own costs of production and the final price tag of their product.
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Estimate the amount of land to support their lifestyle.
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Either A or B
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None of the above
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Detailed explanation-1: -Hidden costs are unforeseen expenses added on to purchases. They can be minor, such as in the airline example above, or they can be major, such as the various closing costs added on when buying a home.
Detailed explanation-2: -A broad definition of trade costs includes policy barriers (tariffs and non-tariff barriers), transportation costs (freight and time costs) as well as communication costs and other information costs, enforcement costs, exchange rate costs, legal and regulatory costs and local distribution costs.
Detailed explanation-3: -Developing countries can benefit from free trade by increasing their amount of or access to economic resources. Nations usually have limited economic resources. Economic resources include land, labor and capital. Land represents the natural resources found within a nations’ borders.
Detailed explanation-4: -Economies of scale are cost reductions that occur when companies increase production. The fixed costs, like administration, are spread over more units of production.