A country with high unemployment could best increase its employment by:
A) encouraging foreign firms to establish subsidiaries that produce the same products local firms produce.
B) encouraging foreign firms to establish licensing arrangements for products local firms produce.
C) encouraging foreign firms to establish subsidiaries that produce products that are not produced locally and to export the products.
D) None of these would reduce employment.

Question

Quizplus · Accepted Answer

By encouraging foreign firms to establish subsidiaries that produce products that are not produced locally and then exporting these products, it will create new job opportunities for the local workforce. This will also lead to an increase in demand for local resources and suppliers, resulting in a positive economic multiplier effect. On the other hand, options A and B would lead to competition between local and foreign firms, potentially leading to job losses for the local workforce. Option D is not a viable solution for reducing unemployment.

A Country with High Unemployment Could Best Increase Its Employment