A major explanation for the decline in employment projected in textiles is
A)increases in income.
B)social problems in the U.S.
C)shifts in production toward low-wage countries.
D)inaccurate expectations about productivity growth.
E) inaccurate expectations about the price level.

Question

Quizplus · Accepted Answer

Shifts in production towards low-wage countries is the major explanation for the decline in employment projected in textiles. This is due to the fact that low-wage countries have cheaper labor costs and can produce goods at a lower cost than in countries with higher labor costs. As a result, textile companies have been moving their production facilities to countries with lower labor costs, causing a decline in employment in the textile industry in countries with higher labor costs.

A Major Explanation for the Decline in Employment Projected in Textiles