An Increase in the Value of the Canadian Dollar Relative

question 74

True/False

An increase in the value of the Canadian dollar relative to other currencies lessens the pressure on manufacturing companies based in Canada to consider locating facilities in low- cost labour countries such as China and India.

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Definitions:

Labor Demand

The total amount of workers that employers are willing and able to hire at a given wage rate, in a given time period.

Firm's Product

The goods or services produced by a firm, designed to meet consumer needs or desires, distinguishing the firm in its market.

Frictional Unemployment

Short-term unemployment that arises from the process of matching workers with jobs.

Workers Equally Well Suited

A situation in which workers possess the same skills and abilities, making them interchangeable in their roles without affecting productivity.