9. Faced with the evidence of poor working conditions and low wages in the bordermaquiladoras, economistsA) shrug their shoulders and ignore the issue.B) agree that trade theory is thus proven hollow and internally inconsistent.C) argue that U.S. consumers should not consume lettuce.D) argue that the poor conditions and low wages are actually improvements for the Mexicanworkers, and may be cited as gains-from-trade.E) argue that Mexico's generally high overall productivity offsets these conditions.
Question
- Faced with the evidence of poor working conditions and low wages in the bordermaquiladoras, economistsA) shrug their shoulders and ignore the issue.B) agree that trade theory is thus proven hollow and internally inconsistent.C) argue that U.S. consumers should not consume lettuce.D) argue that the poor conditions and low wages are actually improvements for the Mexicanworkers, and may be cited as gains-from-trade.E) argue that Mexico's generally high overall productivity offsets these conditions.
Solution
The correct answer is D) argue that the poor conditions and low wages are actually improvements for the Mexican workers, and may be cited as gains-from-trade. Economists would argue that despite the poor working conditions and low wages, these are still improvements for the Mexican workers compared to their previous conditions. This is because they now have jobs and a source of income which they might not have had before. This can be seen as a gain from trade because the Mexican workers are better off than they were before, even if the conditions are not ideal.
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