In China, Many Farmers Have Switched from Producing Rice to Producing

question 44

Multiple Choice

In China, many farmers have switched from producing rice to producing vegetables and fruit because they can earn a great deal more money from these specialty crops. Within China, there are some who applaud this change, but others worry that China soon may become dependent on rice imports. Even with the low cost of Chinese labor, does the fact that China is importing rice suggest that other countries now have a comparative advantage in rice production?

• A) No, China must have a comparative advantage in rice if it imports rice.
• B) Yes, but only if there are other countries with even cheaper labor.
• C) Yes, countries with more expensive labor can offset that cost with abundant land and farm equipment.
• D) Maybe, because rice is a standardized product, the role of innovation and creativity in its production is important.

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Definitions:

Planning

A process involving the setting of goals, developing strategies to achieve those goals, and outlining tasks and schedules to implement the strategies.

Action Orientations

An individual's or organization's propensity to take initiative, make decisions, and execute plans effectively and efficiently.

Results Oriented

An approach or mindset that focuses on achieving specific outcomes or goals, often emphasizing the end result over the process used to achieve it.

Time Management

The process of organizing and planning how to divide your time between specific activities to increase effectiveness, efficiency, and productivity.