Which of the following is not an example of cost differentials that arise between countries?
A)Lower labor rates.
B)Fewer documentation requirements.
C)Possible willingness to accept a lower profit margin.
D)Exchange rate differences.
E)Government subsidies.

Question

Quizplus · Accepted Answer

Fewer documentation requirements do not affect the cost differentials between countries, as they do not directly impact the cost of production or trade. The other options listed (lower labor rates, possible willingness to accept a lower profit margin, exchange rate differences, and government subsidies) are all examples of cost differentials that can arise between countries.

Which of the Following Is Not an Example of Cost