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A worker in Bangladesh can earn $1 per day making cotton cloth on a handloom. A worker in Canada can earn $100 per day making

A worker in Bangladesh can earn $1 per day making cotton cloth on a handloom. A worker in Canada can earn $100 per day making cotton cloth with a mechanical loom. What accounts for the difference in wages?

a.

Canadian textile workers belong to a union.

b.

There is little demand for cotton cloth in Bangladesh and great demand in Canada.

c.

Labour is more productive making cotton cloth with a mechanical loom than with a hand loom.

d.

Bangladesh has a low-wage policy to make its textile industry more competitive in world markets.

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