Question

1. 26. High-tech companies such as Microsoft, Apple and Google are introducing Innovations in goods and services through a process    known as:
   0. creative destruction
   1. creative obsolescence.
   2. creative development
   3. destructive creation

1. 27. Many U.S. companies established maquiladora operations south of the U.S.-Mexico border primarily:
2. 1. As part of a U.S. government effort to deter illegal immigration into the United States.
   2. To sell your products in the growing Mexican market.
   3. To take advantage of the lowest taxes in Mexico.
   4. To take advantage of cheap Mexican labor costs.

28. Labor-intensive industries:

1. They have been moved from industrialized to developing countries.
2. They are highly dependent on cheap labour, as their fixed costs represent a substantial % of total costs.
3. They do not enjoy the benefits of economies of scale
4. All of the above

Answer 1

1> c creative development

These big high-tech companies are creating something which is helping everyone, so it is creative development.

2> d To take advantage of cheap Mexican labor costs.

Maquiladoras are the factors in the US-Mexico borders where Mexicans can work as labor. Thus, the labor cost is cheaper for the US companies.

3> aThey have been moved from industrialized to developing countries.

Since labor cost is higher in the developed world, the labor-intensive jobs are shifted to developing countries where the labor cost is lower.