The Evidence Usually Cited to Prove That Globalization Hurts Workers

question 46

Multiple Choice

The evidence usually cited to prove that globalization hurts workers in developing countries

• A) is inconclusive due to poor statistical design of the underlying samples.
• B) is inconclusive due to the poorly funded Central Statistical Office of Mexico.
• C) is inconclusive due to the ambiguous theoretical implications of the findings.
• D) is conclusive.
• E) does not take into account the Heckscher-Ohlin model.

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Definitions:

Economic Profit

The profit a company makes after deducting both its explicit (direct) and implicit (indirect) costs.

Allocation Of Resources

The process by which resources are distributed for the production of goods and services, usually determined by market forces in a free market, or by government decisions in a planned economy.

Resource Use

The consumption or exploitation of natural resources by humans for manufacturing, energy production, and other economic activities.

Real Rate

The interest rate that has been adjusted to remove the effects of inflation, reflecting the true cost of borrowing.