According to the new international division of labour theory,high-income countries provide transnational corporations with a situation in which they can pay lower wages and taxes.

Question

Quizplus · Accepted Answer

The new international division of labour theory suggests that high-income countries specialize in capital-intensive, high-skill industries, while low-income countries specialize in labor-intensive, low-skill industries, often resulting in transnational corporations moving parts of their production to low-income countries to benefit from lower wages and taxes.

According to the New International Division of Labour Theory,high-Income Countries