Adjustment costs include:
A) dealing with child labor issues.
B) human rights.
C) getting used to foreign products.
D) short-term unemployment.

Question

Quizplus · Accepted Answer

Adjustment costs refer to the costs firms and workers incur when they change their production or employment patterns in response to global competition. Short-term unemployment is an example of adjustment costs that workers may experience when firms relocate or shift to new products. Child labor issues and human rights are not types of adjustment costs, and getting used to foreign products may be considered a learning curve rather than a cost.

Adjustment Costs Include