TNCs Often Set Up Production Facilities in Export Processing Zones

question 18

Multiple Choice

TNCs often set up production facilities in export processing zones for which of the following reasons?

• A) cheaper labor and fewer worker protections
• B) fewer worker protections and better managerial capabilities
• C) better managerial capabilities and better labor-management relations
• D) better labor-management relations and simpler employment contracts

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Definitions:

Nominal GDP

The aggregate price of every ultimate good and service generated within a nation over a certain period, valued in the current monetary rates without modifications for inflationary changes.

Hyperinflation

A very high rate of inflation.

Deflation

A decrease in the general price level of goods and services in an economy over a period, often leading to increased purchasing power of the currency.

Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.