A large car company with headquarters in Canada moves part of its production facilities to a low-income country to take advantage of the cheap labour,less stringent regulations,and lower tax rates.Which theory of global stratification does this event most clearly validate?
A) modernization theory
B) decentralization theory
C) new international division of labour theory
D) free trade and world systems theory

Question

Quizplus · Accepted Answer

The event described in the scenario reflects the principles of the new international division of labor theory, which suggests that global economic activity is organized around a hierarchy of core, semi-peripheral, and peripheral countries, and that businesses and corporations are motivated by economic incentives such as cheap labor and lower taxes to shift production to peripheral countries.

A Large Car Company with Headquarters in Canada Moves Part