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The Clothing, Textile, and Shoe Industries Are Labor-Intensive Industries That

Question 25

Multiple Choice

The clothing, textile, and shoe industries are labor-intensive industries that normally do not enjoy a comparative advantage in capital-abundant countries, which is why:


A) the United States imports all such products.
B) even large improvements in labor productivity cannot make firms in these industries competitive in countries like the United States.
C) only large increases in labor productivity can make firms competitive in these industries in countries like the United States.
D) only explicit barriers to imports can prevent the demise of all firms in these industries in the U.S.

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