Figure: Home's Exporting Industry II

question 108

Multiple Choice

Figure: Home's Exporting Industry II
The graph shows the effect of a subsidy on a large country.
(Figure: Home's Exporting Industry II) According to the
Figure, if the world price of the product is $100, the home
Demand for the product is _____ and the exports are
______.

• A)25; 125
• B)25; 25
• C)50; 75
• D)25; 75

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Definitions:

Foreign Subsidiary

A company that is owned or controlled by another company, known as the parent company, and is located in a country different from where the parent company is situated.

Sweatshops

Work environments that have poor working conditions, violations of labor laws, and unethical treatment of workers, often with extremely low pay.

Poor Working Conditions

An environment where the safety, health, and well-being of employees are not adequately protected.

Low Wages

Compensation that is considered less than the average or standard in a specific industry or region.