When a U.S.air conditioner factory relocates to Mexico,the U.S.community experiences an initial negative shock plus:
A) time bunching.
B) intertemporal substitutions.
C) irreversible investment uncertainty.
D) labor adjustment costs.

Question

Quizplus · Accepted Answer

When a factory relocates to another country, it results in labor adjustment costs for the workers who lose their jobs. This includes costs associated with retraining or relocating, as well as the loss of wages and benefits. Therefore, the most appropriate choice for the impact on the community would be labor adjustment costs.

When a USAir Conditioner Factory Relocates to Mexico,the U