Some proponents of trade sanctions argue for changes in policy because they fear low standards will be used to capture markets and foreign investment. While theoretically possible, there is little or no support for the view that countries use low labor standards this way, because
A) countries with low labor standards generally have trouble attracting foreign investment.
B) low standards can change a country's comparative advantage.
C) it is impossible to lower labor standards.
D) countries would not have an incentive to have low standards.
A
You might also like to view...
Between September 2009 and September 2010, the recovery of private inventories, as shown in Figure 19.1, was far stronger than the overall economy's recovery from the Great Recession. Which is the most reasonable inference?
A) Persistently weak aggregate demand gave producers no alternative but to place current output into storage. B) Businesses overestimated the strength of the recovery, which lead to overstocking of inventories. C) Financial constraints had forced businesses to contract inventories by more than they otherwise would have chosen. The period beginning in September 2009 reflects the attempt by businesses to correct this. D) Generally poor weather conditions in the final months of the year in the northern hemisphere make it less costly to store goods than to transport them to consumers.
General Motors was able to gain advantage over Ford in the 1920s primarily because:
a. the latter failed to adapt its product policy and organization structure to meet the demands of the changing market. b. the former had always been an M-form and better managed organization. c. the latter charged higher prices for its cars than General Motors. d. the former was vertically integrated with better control over its input production than Ford.
Economists believe mergers can sometimes achieve greater efficiency than two companies that do not merge
a. True b. False Indicate whether the statement is true or false
Normative economic principles are concerned with how people ________ make decisions while positive economic principles are concerned with how people ________ make decisions.
A. in ordinary life; in power B. should; do C. do; should D. in power; in ordinary life