international trade — end of chapter problem
kemala is a factory worker in indonesia, where she earns the equivalent of roughly us$1 per hour producing t - shirts to export to the united states. some people argue that this wage is exploitative and unfair.

why might this argument be flawed?
○ u.s. workers deserve to make more because the cost of living in the united states is higher than in indonesia.
○ if kemala willingly choses to work at the factory, the factory job may provide her with a better outcome than any of her next best alternatives.
○ american consumers believe that exploitation of labor is an acceptable side effect of globalization.
○ although kemala may have chosen badly in taking the factory job, the job provides a level of income to which people in developing countries have become accustomed.

Question

international trade — end of chapter problem
kemala is a factory worker in indonesia, where she earns the equivalent of roughly us$1 per hour producing t - shirts to export to the united states. some people argue that this wage is exploitative and unfair.

why might this argument be flawed?
○ u.s. workers deserve to make more because the cost of living in the united states is higher than in indonesia.
○ if kemala willingly choses to work at the factory, the factory job may provide her with a better outcome than any of her next best alternatives.
○ american consumers believe that exploitation of labor is an acceptable side effect of globalization.
○ although kemala may have chosen badly in taking the factory job, the job provides a level of income to which people in developing countries have become accustomed.

Accepted Answer

# Brief Explanations:
1. Analyze Option 1: The argument is about Kemala's wage being exploitative, not comparing U.S. and Indonesian workers' wages based on cost of living. This option is off - topic.
2. Analyze Option 2: If Kemala voluntarily takes the factory job, and it gives her a better outcome than her other available options (opportunity cost), then the wage, even if low by U.S. standards, may not be exploitative as it is her choice and better than alternatives. This addresses the flaw in the "exploitative" argument.
3. Analyze Option 3: The belief of American consumers about labor exploitation being an acceptable side - effect of globalization does not explain why the argument that Kemala's wage is exploitative is flawed. It is more about consumer attitudes rather than the validity of the exploitation claim.
4. Analyze Option 4: Saying that people in developing countries have become accustomed to a certain income level does not justify or explain the flaw in the exploitation argument. It is not a valid economic or logical reason to counter the exploitation claim.

# Answer:
B. If Kemala willingly choses to work at the factory, the factory job may provide her with a better outcome than any of her next best alternatives.

Sovi.AI - AI Math Tutor

QUESTION IMAGE

Question

Explanation:

Answer: