In the Long Run, Foreign Labor Remains Cheap When and If

question 92

Multiple Choice

In the long run, foreign labor remains cheap when and if

• A)it becomes highly efficient and competes successfully internationally.
• B)countries erect barriers to trade between poor countries.
• C)productivity increases more rapidly in poor countries than in rich countries.
• D)it remains inefficient compared to other countries' labor.

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Definitions:

Income Ratio

A financial metric that compares different streams of income to one another or to total income, often used in profitability analysis.

Liquidation

The process of closing a business, selling its assets to pay creditors, and distributing any remaining assets to the owners or shareholders.

Gains and Losses

Increases or decreases in equity from transactions and other events and circumstances affecting the entity, other than those relating to contributions from or distributions to equity participants.

Salary Allowances

Monetary benefits in addition to regular salary provided to employees, which may cover expenses such as housing, transportation, and medical expenses.