With Respect to the Success of Maquiladoras, Which of the Following

question 170

Multiple Choice

With respect to the success of maquiladoras, which of the following is NOT one of Mexico's competitive advantages?

• A) inexpensive labor
• B) its membership in NAFTA
• C) its location along the U.S. border
• D) less stringent environmental regulations
• E) abundant raw materials

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Definitions:

Pauper Labor Fallacy

The incorrect assumption that lower production costs in countries with cheaper labor will always harm the economy of wealthier countries by taking away jobs.

Comparative Advantage

The ability of an individual or country to produce a certain good or service at a lower opportunity cost than others.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost per unit than competitors.

Computers

Electronic devices capable of executing a set of instructions to perform a vast array of tasks, from basic calculations to complex data processing and analysis.