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A phone is designed in one country, built from Korean parts, assembled in China and marketed back home. Economists call this:
AFreezing the labour pool
BRaising the tariff wall
CSplitting the value chain
DClosing the trade window
Answer & Solution
Correct answer: C. Splitting the value chain
1. Each stage sits in a different country.
2. The chain of production is divided up.
3. It is splitting up the value chain.
_Source: OpenStax Principles of Economics 3e, Chapter 33, International Trade._
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