Answer: Option (d) is correct.
Explanation:
Correct option: Infant-industry argument for tariffs.
The industries which are new in the market need to be protected from the competitors from the other countries which were already in the international market for a long time.
Strategic policy is used to protect the infant industries which were new in the international market. So, this policy help these industries to develop and compete with the international industries.
Once these industries fully developed and are able to achieve similar level of economics of scale, then this protection will be withdraw from the industries.
Answer:
Multinationals must subjectively determine the local living wage, which is usually more than the local legal wage in developing countries. Customers surveyed say they are willing to pay a few dollars more to improve working conditions in sweatshops.
Explanation:
A sweatshops may be defined as a factory or firm which violates some of the labor laws of the United States as stated by the US department of labor.
In these sweatshops, they provide unfair wages, the working conditions are very poor, proper labor laws are not followed extended working hours, exploitation of labor takes place.
This has been a real challenge the developing countries are facing. This can be improved as the multinational companies determines a higher local living wage than the legal wage in some of the developing countries. Even the customers of their products are coming forward and are willing to pay more for the products so that the working conditions of the sweatshops improves.
Answer:
Number of units required for the two operations to break even= 907 (approx)
