Faced with the Evidence of Poor Working Conditions and Low

question 29

Multiple Choice

Faced with the evidence of poor working conditions and low wages in the border maquiladoras, economists

• A) shrug their shoulders and ignore the issue.
• B) agree that trade theory is thus proven hollow and internally inconsistent.
• C) argue that U.S. consumers should not consume lettuce.
• D) argue that the poor conditions and low wages are actually improvements for the Mexican workers, and may be cited as gains-from-trade.
• E) argue that Mexico's generally high overall productivity offsets these conditions.

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Definitions:

Lease Space

The act of renting property or area for business purposes, such as office or retail space.

Salvage Value

The projected end-of-life resale value of an asset.

Depreciation Method

A systematic approach to allocate the cost of tangible assets over their useful lives, reflecting the asset's consumption, obsolescence, or loss of value.

Productive Units

Measures or quantities of output produced, serving as a basis for allocating costs in some accounting systems.