Question
In: Economics
Does having low labor standards (relative to other countries) enable a country to export more than...
Does having low labor standards (relative to other countries) enable a country to export more than it might otherwise? Explain your reasoning.
Solutions
Expert Solution
There is no evidence that low labor rates have significant impact on trade flows in themselves. Several studies have failed to link labor standards interventions to foreign trade flows or direct investment flows. The OECD has concluded that core labor standards are not instrumental in shaping trade efficiency. The view that low-standard countries will benefit from gains in export market shares to the detriment of high-standard countries seems to lack strong support
Free trade is meant to remove unfair barriers to global trade, and to raise the economy in both developed and developing nations. But free trade can and has had many negative effects, notably deplorable working conditions, job losses, economic damage to some countries, and global environmental damage. Yet the World Trade Organization, much to the detriment of some national economies and millions of workers, continues to promote open and unfettered trade.
Rahul Sunny answered 2 years agoRelated Solutions
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An economist wonders if corporate productivity in some countries is more volatile than in other countries....
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is more volatile than in other countries. One measure of a
company's productivity is annual percentage yield based on total
company assets.
A random sample of leading companies in France gave the following
percentage yields based on assets.
4.9
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Use a calculator to verify that the sample variance is
s2 ≈...
An economist wonders if corporate productivity in some countries is more volatile than in other countries....
An economist wonders if corporate productivity in some countries
is more volatile than in other countries. One measure of a
company's productivity is annual percentage yield based on total
company assets.
A random sample of leading companies in France gave the following
percentage yields based on assets.
4.9
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5.7
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4.1
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6.5
5.0
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Use a calculator to verify that the sample variance is
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is more volatile than in other countries. One measure of a
company's productivity is annual percentage yield based on total
company assets.
A random sample of leading companies in France gave the following
percentage yields based on assets.
4.9
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4.4
5.7
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Use a calculator to verify that the sample variance is
s2 ≈...
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