Labor Cost Advantages Gained by Moving into a Country with Low

question 40

Multiple Choice

Labor cost advantages gained by moving into a country with low wages may be short-lived because ________.

• A)transport costs go up to cancel out the cost savings
• B)tax increases cancel out all labor cost differentials
• C)rivals adopt capital-intensive production methods
• D)competitors follow leaders into low-wage areas

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Definitions:

Zoning Regulations

Laws that define how property in specific geographic zones can be used, affecting building types, dimensions, and usage.

Legal Relief

Assistance or redress provided to a party in a legal dispute, through methods such as monetary compensation, injunctions, or declaratory judgments.

Fair Housing Act

A U.S. law passed in 1968 that prohibits discrimination in the buying, selling, renting, or financing of housing based on race, religion, national origin, or sex.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.