European Union Labor Costs Exceed U

question 15

Multiple Choice

European Union labor costs exceed U.S.and British labor costs primarily because

• A) worker productivity is lower in the EU
• B) union wages are higher in the EU
• C) layoffs and plant closings are more restrictive in the U.S.and Britain
• D) the amount of paid time off is higher in the EU
• E) labor-management relations are better in the EU

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Definitions:

Quotas

Limits set by governments on the quantity of a good that can be imported or exported within a certain time period to regulate trade.

Sugar

A sweet crystalline substance obtained from various plants, primarily sugar cane and sugar beet, used as a sweetener in food and drink.

Trade Protection

Policies or actions taken by a government to protect its domestic industries from foreign competition.

National Security

The protection and preservation of a nation's people, economy, and institutions from external and internal threats.