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 local firms do not produce.
D)none of the above would reduce employment.

Question

Quizplus · Accepted Answer

By encouraging foreign firms to establish subsidiaries that produce products local firms do not produce, the country can create new job opportunities in industries that previously did not exist. This can lead to decreased unemployment rates as more people are able to find work in these new industries. Encouraging foreign firms to establish subsidiaries that produce the same products as local firms or enter into licensing agreements may lead to increased competition and ultimately result in job losses for local firms.

A Country with High Unemployment Could Best Increase Its Employment