Even if outsourcing decreases the wage levels of some states, liberal economic theory and empirical evidence show that
a. the decreasing wage level is offset by an increase in purchasing power.
b. low wage levels tend to result in high levels of unemployment.
c. inflation tends to occur in globalized states.
d. in the long run, there is no incentive for companies to hire domestic labor.
Which of the following statements is NOT true regarding the globalization of labor?
a. The use of child or slave labor can be used to gain an unfair advantage over companies that pay a fair wage.
b. Mobility of businesses and labor is an integral component of the international economy.
c. Corporations will always benefit by moving to a country where labor is less expensive.
d. Studies show that multinational corporations need for skilled labor can encourage countries to increasespending on education and health care.
The globalization and outsourcing of labor is most problematic for which sector of laborers?
a. Professionals
b. Highly skilled
c. Low skilled
d. Supervisory
How might the growth of FDI produce a level of social homogeneity?
a. Countries adopt similar institutions to facilitate economic activity.
b. FDI conveys technologies and corporate practices across borders.
c. FDI leads countries to adopt one another's norms.
d. All of these are true.
How is the degree of trade integration measured?
a. The difference between growth rates in trade and gross domestic product (GDP)
b. The average export volume divided by the average gross domestic product (GDP)
c. Gross domestic product (GDP) minus gross national product (GNP)
d. The difference between total export volume and gross domestic product (GDP)
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