Suppose That Labor Is Mobile Between Countries a and B

question 82

Multiple Choice

Suppose that labor is mobile between countries A and B.If the relative demand for goods rises in country A,then labor can flow from ______________.It may be possible in this situation for countries A and B to __________________ which would help to___________________.

• A) country A to country B; fix the exchange rate between the two countries (or have a common currency); eliminate the risks associated with having a flexible exchange rate.
• B) country B to country A; impose trade restrictions upon one another; increase employment in country A
• C) country B to country A; fix the exchange rate between the two countries (or have a common currency); eliminate the risks associated with having a flexible exchange rate
• D) country A to country B; adopt flexible exchange rates; reduce the risk of exchange rate fluctuations

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Definitions:

Minor Breach

A violation of a contract that does not significantly harm the intent of the agreement, allowing the contract to still be fulfilled.

Architect LLC

Refers to a limited liability company operating in the architectural sector, offering professional design services.

Discharged

Released from a contract, obligation, or debt; in legal terms, it often refers to a debt being forgiven or a prisoner being released.

Duties

Obligations or responsibilities that are required to be fulfilled under the law or by agreement.