Under What Conditions Can Firms in a High-Wage Nation Such

question 18

Multiple Choice

Under what conditions can firms in a high-wage nation such as Canada compete effectively with imports from low-wage nations?  

• A) if skill levels are identical in the nations 
• B) if Canada reduces tariffs on imports 
• C) if labour productivity is higher in the low-wage nations 
• D) if labour productivity is higher in Canada

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Definitions:

Reorder Point

The inventory level at which a new order should be placed to replenish stock before it runs out.

Digestive Tract

The series of organs in the body through which food passes, nutrients are absorbed, and waste is eliminated.

Muscle Tissue

A tissue composed of fibers capable of contracting to effect bodily movement.

Epithelial

Pertaining to the epithelium, a layer of cells covering the body surfaces or lining cavities.