Economists Are Concerned About a Slowdown in Productivity Because of the Risk

question 29

Multiple Choice

Economists are concerned about a slowdown in productivity because of the risk of higher inflation rates and a(n)

• A) loss of our ability to diversify in manufacturing.
• B) increased dependence on imported raw materials.
• C) decline in service industries that depend on microelectronics technology.
• D) potential decline in technological change that could affect our future rate of growth.
• E) fear that it will lead to an influx of unskilled workers replacing domestic workers.

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Definitions:

Localizing Operations

The process of adjusting a business's operations, products, or services to match the specific cultural, legal, or market requirements of a local region.

North American Free Trade Agreement

A trade agreement eliminating tariffs and other trade barriers between the United States, Canada, and Mexico.

Tariffs

Taxes imposed on imported goods and services, which can affect trade dynamics between countries.

Trade Barriers

Measures implemented by governments to regulate or limit international trade, including tariffs, quotas, and embargos, to protect domestic industries.