If China Has a Comparative Advantage in Producing Low­

question 26

Essay

If China has a comparative advantage in producing low­
skilled, labor­intensive goods, what should happen to
Chinese low­skilled workers' wages as trade barriers
against Chinese imports fall across the world? What should
happen to returns to capital in China?

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Definitions:

Social Media

Platforms and websites that enable users to create and share content or participate in social networking.

Ultimate Consumers

The final buyers or users of products and services for personal, non-business use.

Promotional Mix

The combination of advertising, personal selling, sales promotion, public relations, and direct marketing methods used to reach target customers and achieve marketing goals.

Pull Strategy

A marketing strategy designed to create demand for products directly from consumers, leading retailers to stock the product due to increased consumer demand.