Posted by admin | Posted in Uncategorized | Posted on 06-05-2010
Tags: cotton cloth, cotton cloth diapers, cotton cloth napkins, cotton clothes, cotton clothing, crafts, fabric, organic, sewing, shopping
A worker in Bangladesh can earn $1 per day making cotton cloth on a hand loom. A worker in the United States..?
I’m stuck on this question in my economics homework can anyone please help?
Thanks, Nicole
A worker in Bangladesh can earn $1 per day making cotton cloth on a hand loom. A worker in the United States can earn $100 per day making cotton cloth with a mechanical loom. What accounts for the difference in wages?
A. U.S. textile workers belong to a union.
B. There is little demand for cotton cloth in Bangladesh and great demand in the U.S.
C. Labor 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.
C. Labor is more productive making cotton cloth with a mechanical loom than with a hand loom.
Besides what you have as option for the best answer (A – D) I would like to add that in Bangladesh people lives with bare minimum things or items to fulfill their basic needs to support life. The resources are limited for 150 million souls who are fighting on daily basis to grab some crumbs just to survive. In such situation a lower rung worker in Bangladesh can earn $2 to $3 per day (It does hardly matter if u write $1 since u r comparing it with $100 in the US) can buy only his food and save some for paying monthly house rent and some for cloths or medicine. Everyday such people go to bed either hungry or under-fed or under nourished depending on where he/she lives. On the other hand $100 for similar person-profile in the US would earn him/her at least 10 times decent food and accommodation. The whole thing boils down to productivity of the workforce more than anything else mentioned in the multiple choice offered in your question.
Hope above helps.
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