A Large Car Company with Headquarters in Canada Moves Part

question 133

Multiple Choice

A large car company with headquarters in Canada moves part of its production facilities to a low-income country to take advantage of the cheap labour,less stringent regulations,and lower tax rates.Which theory of global stratification does this event most clearly validate?

• A) modernization theory
• B) decentralization theory
• C) new international division of labour theory
• D) free trade and world systems theory

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Definitions:

Economic Question

A query that seeks to understand how scarce resources are allocated, such as what to produce, how to produce it, and for whom to produce.

Milking Machines

Mechanical devices designed to extract milk from animals, significantly improving efficiency and hygiene in dairy farming.

Shift AA to BA

Moving from one economic point or position (AA) to another (BA), indicating a change in an economic condition or policy impact.

Technological Improvement

The innovation or development of new techniques, methods, or devices that increase productivity and efficiency in processes or products.