Suppose That Labor Is Mobile Between Countries a and B

question 82

Multiple Choice

Suppose that labor is mobile between countries A and B.If the relative demand for goods rises in country A,then labor can flow from ______________.It may be possible in this situation for countries A and B to __________________ which would help to___________________.

• A) country A to country B; fix the exchange rate between the two countries (or have a common currency); eliminate the risks associated with having a flexible exchange rate.
• B) country B to country A; impose trade restrictions upon one another; increase employment in country A
• C) country B to country A; fix the exchange rate between the two countries (or have a common currency); eliminate the risks associated with having a flexible exchange rate
• D) country A to country B; adopt flexible exchange rates; reduce the risk of exchange rate fluctuations

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Definitions:

Independent Contractor

A person or entity contracted to perform work for another entity as a non-employee, retaining control over how the work is executed.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with care of money, property, or sensitive information.

Employment

A formal relationship between an employer and an employee in which work is performed in exchange for compensation.

Restrictive Covenants

Clauses in a contract that impose restrictions on one or more parties' actions, commonly used in employment and real estate agreements.