The Case in Point on East Germany's transition indicated that the difficulties were largely the result of:
A) the lack of subsidies and tax breaks for firms moving into East Germany.
B) lack of financial resources in West Germany.
C) an increase in wages despite relatively low productivity.
D) lack of labor mobility between Germany and other central European countries.

Question

Quizplus · Accepted Answer

The Case in Point on East Germany's transition states that one of the main difficulties was the increase in wages despite relatively low productivity. This made it difficult for East German firms to compete with their Western counterparts and led to job losses and economic struggles. While there were other challenges, such as a lack of subsidies and tax breaks for firms, this was the key factor mentioned in the case study.

The Case in Point on East Germany's Transition Indicated That