Shimko Chapter 8 193-197

The race to the bottom thesis would predict

• lower wages in the United States.

• decreased investment in developing countries.

• rising wages for U.S. workers.

• declining profits for U.S. companies.

Most goods produced in the United States are sold to foreign countries.

• True

• False

Most foreign direct investment goes to developed nations with relatively high wages.

• True

• False

Critics of the race to the bottom thesis argue that the problem is likely overstated because companies are more interested in the _____________ of their workers, not their wages.

• value or productivity

• cost

• safety

• lives

The fact that most foreign investment is made in developed nations with high wages and business regulation would seem to undermine the ______________________.

• race to the bottom thesis

• tyranny of location

• the power of developed states.

• dependency theory

What is so bad about anecdotes?

• They may not reflect statistical reality.

• There are always boring.

• They are usually outright lies.

• They distract from the main issue.

What is selection bias?

• Only choosing facts that align with your perspective.

• The bias towards choice in consumerism.

• Racism in the global economy.

• Limitation of the power of democracies and voting.

Why don't local newspapers report on factories that don't move overseas?

• They don't care about the local economy.

• It is not an interesting news story.

• Local newspapers are poorly staffed.

• They prefer to report on sports instead of politics.

Why can't Microsoft move out of the US to avoid lawsuits?

• It is tied to the local workforce.

• It wants to keep close ties with American universities.

• It doesn't have enough money to rebuild at another location.

• It is worried about import tariffs.

• The US government won't allow them to move.

What percentage of world GDP came from exports in 2010?

• 70

• 30

• 50

• 10

• 90