Higher wages and improved benefits for workers in core nations is possible because added surplus from the periphery enables companies to maintain high profit margins.

Question

Quizplus · Accepted Answer

This statement is true. Companies in core countries benefit from lower costs of production in the periphery, which allows them to maintain high profit margins while also paying their workers higher wages and offering better benefits. This is known as the "race to the top" effect.

Higher Wages and Improved Benefits for Workers in Core Nations