L6M10 practice question 20 of 25

What does the concept of separability of the flow of goods and the flow of ownership refer to?

Full set: 197 questions

Answer options

A: It signifies the ability to distinguish between the ownership of goods and their physical location. Correct answer

B: It highlights the importance of independent suppliers in foreign countries.

C: It implies that multinational firms cannot engage in foreign direct investment.

D: It means goods and ownership must always be physically located together.

Correct Answer:

A. It signifies the ability to distinguish between the ownership of goods and their physical location.

Explanation

The separability of goods and ownership means that goods may be physically located in one place, while ownership remains with an entity elsewhere. [P-111]

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