Answered

A worker in Thailand can earn \($12 per day making cotton cloth on a
hand loom. A
worker in the United States can earn $\)82 per day
making cotton cloth with a mechanical loom. What is the likely
explanation for the difference in wages?
Labor is more productive making cotton cloth with a
mechanical loom than with a hand loom.
O There is little demand for cotton cloth in Thailand and great
demand in the United States.
○ Thailand has a low-wage policy to make its textile industry
more competitive in world markets.
United States textile workers belong to a union, whereas
Thailand textile workers do not belong to a union.

Verified Answer :

GinnyAnswer

Final answer:

The difference in wages between Thailand and the United States in cotton cloth production is due to differences in productivity, wage policies, and union representation.


Explanation:

The likely explanation for the difference in wages between a worker in Thailand and a worker in the United States making cotton cloth is that:

  1. Labor is more productive making cotton cloth with a mechanical loom than with a hand loom. Workers in the United States can earn higher wages due to the efficiency and productivity gains associated with using mechanical looms.
  2. Thailand has a low-wage policy to make its textile industry more competitive in world markets. This could contribute to the lower wages in Thailand compared to the United States.
  3. United States textile workers belong to a union, whereas Thailand textile workers do not belong to a union. Union representation can often lead to better wages and working conditions for workers.

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