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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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