Why Is It Cheaper and Easier to Prevent Environmental Damage

question 51

Multiple Choice

Why is it cheaper and easier to prevent environmental damage in developing countries?

• A)Developing countries have less invested in infrastructure and thus are better able to adopt new,greener technologies.
• B)Labor costs are lower in developing countries,which means that it is cheaper to hire workers to refurbish firms with new technologies.
• C)Labor costs are lower in developing countries,which means firms in developing countries can profit from using workers instead of highly polluting machinery.
• D)Wealthy countries can afford to sell new technologies at lower prices in developing countries because of favorable exchange rates.

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Definitions:

Common-base Year Statement

Financial statements that are adjusted to a single point in time or base year, facilitating comparison across different time periods.

Market-to-Book Ratio

A ratio used to compare a company's current market price to its book value.

Depreciation Life

The estimated period over which a fixed asset is expected to be usable, affecting its depreciation calculation for accounting purposes.