What will happen in the market for clothing when a major department store shifts its production of clothing to a low-labor-cost country?

Question

Quizplus · Accepted Answer

When a major department store shifts its production of clothing to a low-labor-cost country, it will lower the cost of production, which will lead to an increase in supply and a fall in the price of clothing. This is because the department store can now produce the same amount of clothing at a lower cost, which they will pass on to consumers in the form of lower prices to attract more buyers.

What Will Happen in the Market for Clothing When a Major