Suppose It Takes a Chinese Worker 2 Hours to Produce

question 128

True/False

Suppose it takes a Chinese worker 2 hours to produce a ceramic pot, and 20 hours to produce a tablecloth. Suppose that it takes a Canadian worker 2 hours to produce a ceramic pot and 10 hours to produce a tablecloth. It will pay China to produce extra pots and export them to Canada in return for imported Canadian tablecloths.

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Definitions:

NAFTA

The North American Free Trade Agreement, a treaty between the United States, Canada, and Mexico designed to reduce trading barriers and promote economic cooperation among these countries.

Worker Rights

The legal and moral entitlements attributed to employees, including the right to fair pay, safe working conditions, and freedom from discrimination.

Transnational Collaboration

The practice of individuals, groups, or entities from different nations working together toward a common goal or on a shared project.

Labor Movement

A broad social movement seeking to improve rights, wages, and working conditions for workers through collective action and labor unions.