An important factor in the decline of the U.S.textile industry over the past 100 or so years is
A)foreign competitors that could produce quality textile goods at low cost.
B)lower prices of goods that are substitutes for clothing.
C)a decrease in Americans' demand for clothing, due to increased incomes and the fact that clothing is an inferior good.
D)the fact that the minimum wage in the U.S.has failed to keep pace with the cost of living.

Question

Quizplus · Accepted Answer

Foreign competitors, particularly those in Asia, have been able to produce textile goods at a lower cost due to lower wages, lower cost of production, and economies of scale. This has made it difficult for U.S. textile companies to compete and has led to a decline in the industry.

An Important Factor in the Decline of the U