Praxis II Citizenship

Category - Economics

Global division of labor is best defined as:
  1. Countries specializing in the work they can do at the lowest opportunity cost.
  2. The labor-dividing practices that are common to all cultures.
  3. Importation and exportation of labor resources.
  4. Outsourcing.
Explanation
Answer: A - The global division of labor is the process by which countries specialize in the work they can do at the lowest opportunity cost. It is the same as the division of labor in a community, such as a single factory or a nation, but it applies to the whole global community. For example, workers in China may acquire and process raw silk, then export the material to the United States where it is fashioned into garments that are based on French designs. The division of labor for the garment is global: Chinese laborers handled the natural resources, French laborers created the design, and U.S. laborers constructed the product.
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