If Labor in Mexico Is Less Productive Than Labor in the United

question 105

Multiple Choice

If labor in Mexico is less productive than labor in the United States in all areas of production,

• A)neither nation can benefit from trade.
• B)Mexico can benefit from trade but the United States cannot.
• C)the United States will have a comparative advantage relative to Mexico in the production of all goods.
• D)both Mexico and the United States still can benefit from trade.

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Definitions:

Directing

The process of guiding and overseeing the activities of an organization or team to achieve its objectives.

Unrealistic Budget

A budget plan that is not achievable or practical given the current constraints and resources.

Top Down Fashion

An approach or process that begins from the highest level of a hierarchy or system moving towards the lower levels.

Long-Range Planning

The process of setting long-term goals and strategies, often extending five or more years into the future.