_________ will lead to the movement of labor and capital from areas of low productivity to areas of high productivity.
A)Trade creation
B)Supply chain management
C)Trade diversion
D)Price mobility
E)Factor mobility

Question

Quizplus · Accepted Answer

Factor mobility refers to the ability of labor and capital to move from areas of low productivity to areas of high productivity, which leads to an increase in economic efficiency and growth. Trade creation and diversion refer to the effects of trade on the allocation of resources, while supply chain management and price mobility are related to the management and coordination of production and distribution processes.

_________ Will Lead to the Movement of Labor and Capital