What are the short-run economic effects when u. s. firms substitute labor outside of the u. s. for labor inside the u. s.?

a. the demand curve for labor in the u. s. increases, and the demand curve in the foreign country will increase.

b. the demand curve for labor in the u. s. decreases, and the demand curve in the foreign country will increase.

c. the demand curve for labor in the u. s. decreases, and the demand curve in the foreign country will decrease.

d. the demand curve for labor in the u. s. increases, and the demand curve in the foreign country will decrease?

Question

Business

Naomi Randall

1 August, 15:42

What are the short-run economic effects when u. s. firms substitute labor outside of the u. s. for labor inside the u. s.?

a. the demand curve for labor in the u. s. increases, and the demand curve in the foreign country will increase.

b. the demand curve for labor in the u. s. decreases, and the demand curve in the foreign country will increase.

c. the demand curve for labor in the u. s. decreases, and the demand curve in the foreign country will decrease.

d. the demand curve for labor in the u. s. increases, and the demand curve in the foreign country will decrease?

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Answers (1)

Know the Answer?

Semaj Mullins · Answer 1

Correct option is B

Explanation:

the demand curve for labor in the u. s. decreases, and the demand curve in the foreign country will increase.

In other words, the wage rate in the U. S country will reduce as a result of low labor demand. While, the wage rate in the Foreign country will increase as a result of high labor demand.