If the Hourly Wage of U

question 89

Multiple Choice

If the hourly wage of U.S. workers is $16, the hourly wage of Mexican workers is $2, and U.S. workers produce 5 times as much output per hour as Mexican workers, then, other things equal, it would be efficient to locate production facilities in:

• A) the United States since the cost per unit of output will be higher.
• B) the United States since the cost per unit of output will be lower.
• C) Mexico since the cost per unit of output will be higher.
• D) Mexico since the cost per unit of output will be lower.

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Definitions:

Global Competition

The competitive dynamics and pressures from various companies around the world competing in the same marketplace.

Product Cycles

The stages a product goes through from development and introduction to the market through to its decline and discontinuation.

Essential Skills Training

Essential Skills Training focuses on imparting the fundamental skills required for workforce participation, including literacy, numeracy, communication, and problem-solving.

Essential Skills Training

Training that focuses on the fundamental skills necessary for workforce readiness, such as literacy, numeracy, and communication skills.