7/15/2018 Print Questions 26. Developing countries often appeal to foreign inves

Question

7/15/2018 Print Questions 26. Developing countries often appeal to foreign investors due to the extremely low wages they can pay in those countries. The best way to reverse this tactic is for the business's home country to O A. instill tariffs to decrease the profits of businesses producing in low-wage countries. O B. use legal action to close down businesses that use low-wage foreign labor. ° C. enforce a minimum wage that is equal to the wage within its own country. O D. encourage businesses to make the labor conditions in developing countries known to their customers

Explanation / Answer

Option A

Explanation: A tariff would be able to reduce the profits of the firm. If the tariff is high enough, there will be no incentive for the firm to invest in the foreign market paying lower image. So, the tactics will be reversed.

Related Questions

Navigate

• Browse (All)
• Browse 7
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.