TNCs Often Set Up Production Facilities in Export Processing Zones

question 52

Multiple Choice

TNCs often set up production facilities in export processing zones for which of the following reasons?

• A)cheaper labour and fewer worker protections
• B)fewer worker protections and better managerial capabilities
• C)better managerial capabilities and better labour-management relations
• D)better labour-management relations and simpler employment contracts

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Definitions:

Domestic Market

The supply and demand for goods and services within a single country.

Domestic Producer Surplus

The difference between what domestic producers are willing to accept for a good and the actual price they receive, measuring their economic benefit.

Tariff

A tax imposed by a government on goods imported from another country, intended to increase the price of foreign goods and protect domestic industries.

Oranges

A type of citrus fruit known for its juicy segments and rich source of Vitamin C.