"Shoe Industry under Pressure Amid Rising Costs "
Rising costs have forced about 15 per cent of shoe manufacturers in a major south China industrial c to shut down or relocate in the past year... [the firms have] identified rising wages as a key factor be the closures and relocations from Dongguan...The problems in the footwear industry reflect broader affecting manufacturers across China's Pearl River Delta..."
HYPERLINK "http://www.ft.com/" www.ft.com, 2/26/200
As the same pressures affect other industries across China, we expect to see

Question

Quizplus · Accepted Answer

The article specifically mentions rising costs as a key factor in the closures and relocations of shoe manufacturers in Dongguan, indicating that there is cost-push inflation affecting the industry. As this problem is affecting other industries across China, it is likely that we will see broader cost-push inflation in the economy. Therefore, the best choice is option C: cost-push inflation.

"Shoe Industry Under Pressure Amid Rising Costs