Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The large number of low-income employees in China is one of the main factors why businesses make their goods there (Bajpai, 2024). According to the

The large number of low-income employees in China is one of the main factors why businesses make their goods there (Bajpai, 2024). According to the rule of supply and demand, wages will remain low as long as there is a higher supply of employees than there is a need for workers with low pay (Bajpai, 2024). China's large workforce population makes it possible to manufacture in large quantities, meet any seasonal requirements from the market, and even adjust to unexpected increases in demand (Bajpai, 2024). In moments of economic decline, wide disparities may have more significant effects on stability in government and societal solidarity (Mazzocco, 2022). Wide sections of society may lose their trust due to the growing lack of formality of the economy and declining salaries for unskilled employees, creating new vulnerability in the system of society (Mazzocco, 2022)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Economics Theory and Policy

Authors: Paul R. Krugman, Maurice Obstfeld, Marc Melitz

11th Edition

134519574, 9780134521046 , 978-0134519579

More Books

Students also viewed these Economics questions

Question

Debate the overexpansion of mental disorders attributed to the DSM.

Answered: 1 week ago

Question

Self-confidence

Answered: 1 week ago

Question

The number of people commenting on the statement

Answered: 1 week ago