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djverab [1.8K]
3 years ago
11

Mexico can produce vine-ripened tomatoes at a lower opportunity cost than firms in the United States. Through trade negotiations

, the United States lifted quotas limiting the import of tomatoes from Mexico. Some firms in Florida, in the face of this new competition, had to close their farms and their workers lost their jobs. Many of the workers could not find new jobs right away. What type of unemployment describes the workers' situation
Business
1 answer:
VikaD [51]3 years ago
6 0

Answer:

Structural unemployment

Explanation:

From the question we are informed about Mexico which are producing vine-ripened tomatoes at a lower opportunity cost than firms in the United States. Through trade negotiations, the United States lifted quotas limiting the import of tomatoes from Mexico. Some firms in Florida, in the face of this new competition, had to close their farms and their workers lost their jobs. Many of the workers could not find new jobs right away. In this case, the type of unemployment that describes the workers' situation is

Structural unemployment.

Structural unemployment can be regarded as one type of unemployment which is a form of involuntary unemployment that is been causedd as a result of mismatch between the skills that can be offered by workers in the economy

and the skills that is been demanded of workers by their employers, structural unemployment can be regarded as" the skills gap"

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