Which of the following is true regarding the competitive pressures faced by American companies?
A) Large industries such as airlines and telecommunications are deregulated.
B) Foreign trade has been declining at a constant rate since 1960.
C) In less affluent,less industrialized countries,wages are lower due to scarcity of labor compared with demand.
D) By global standards,American workers are quite economical.

Question

Quizplus · Accepted Answer

Large industries such as airlines and telecommunications have been deregulated, leading to increased competition and pressure on American companies to remain competitive.

Answer: C
 In less affluent, less industrialized countries, the scarcity of labor compared to demand leads to lower wages, which can put pressure on American companies to outsource to these regions to remain competitive.

Answer: D
 By global standards, American workers are not particularly economical, as labor costs in many other countries are much lower. This can put pressure on American companies to find more cost-effective solutions to remain competitive.

Which of the Following Is True Regarding the Competitive Pressures