In Poorer Countries, Free Trade ________ the Demand for Labor

question 36

Multiple Choice

In poorer countries, free trade ________ the demand for labor in these countries and ________ the wages paid in these countries.

• A) decreases; lowers
• B) decreases; raises
• C) increases; lowers
• D) increases; raises

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Definitions:

Equipment

Tangible, long-term assets used in the operation of a business, not intended for resale, such as machinery, office furniture, and computers.

Hedging Reserve

A financial reserve established to offset potential losses or gains due to future price or currency fluctuations, often related to commodity or foreign exchange hedging.

Capital Reserve

Funds set aside from a company's profits for future investments or to cover anticipated liabilities or losses.

U.S.GAAP

United States Generally Accepted Accounting Principles, which are the set of accounting standards used for financial reporting in the U.S.