Suppose US based ABC Corp hires workers from India. Which linkage is it part of for an open economy?
None of the above
Financial markets
Factor markets
Consumption
Since ABC corp is using factors from abroad, it is part of a factor market linkage.
Suppose the price at which equilibrium is attained above the minimum average cost of the firms constituting the market. Now, if we allow for free entry and exit of firms, how will the market price adjust to it?
Eicher's low-cost manufacturing base afforded Volvo the right opportunity to make India an exporting hub for emerging markets.