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Chapter 21: Q. 41 (page 523)

Why do you think labor standards and working conditions are lower in the low-income countries of the world than in countries like the United States?

Short Answer

Expert verified

Due to existence of abundant supply.

Step by step solution

01

Step1. Introduction

Labor standards and working conditions of a country define the income of a country. It divides the countries into low-income countries and high-income countries.

02

Step2. Explanation

It is generally observed that low income countries have abundant supply of labor. As a result of availability of abundant labor, the wages fall and the workers to earn work at lowest of low wages and worst of working conditions, all due to the competition.

High labor standards are a luxury for low-income countries. Because of less attractive alternative jobs, the workers in these countries prefer higher wages over better labor standards.

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