When Poland Entered the European Union -Where There Is Free

question 16

Multiple Choice

When Poland entered the European Union -where there is free movement of labor across member countries -some of the abundant Polish plumbers migrated to the United Kingdom to fill the shortage there. The net result was that wages for plumbers in the U.K. stabilized or softened and wage rates for plumbers in Poland increased. As the U.K. consumer of plumbing services benefited from this development, one could argue that the real income of the British consumer was, therefore, enhanced. This is an example of the _____.

• A) factor-price equalization theory
• B) diamond theory
• C) trade policy theory
• D) managed trade theory
• E) trade deficit theory

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Definitions:

Task Identity

The degree to which a job requires the completion of a whole and identifiable piece of work.

Job Characteristics Model

A theory that proposes how job design affects employee motivation, satisfaction, and performance, highlighting five core job dimensions.

Visible Outcome

A result or effect of an action, process, or situation that is noticeable and can be seen or perceived.

Employee

A person who is hired to provide services to a company on a regular basis in exchange for compensation.