Which of the following is an example of how employers have lowered labor costs? engaged in featherbedding moved factories to other countries replaced physical capital with human capital hired more highly educated workers

Question

Geography

Louis

6 December, 14:10

Which of the following is an example of how employers have lowered labor costs? engaged in featherbedding moved factories to other countries replaced physical capital with human capital hired more highly educated workers

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Answers (1)

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moved factories to other countries

Explanation:

Let's examine all the answer choices provided.

engaged in featherbedding

Featherbedding consists on keeping on payroll more staff than you need, to create jobs or simply to respect a union contract.

moved factories to other countries

That's when a company moves the fabrication of his product from country A (usually an expensive developed country) to a country B (usually an inexpensive developing country).

replaced physical capital with human capital

That's replacing machines by humans, could be for quality issues or to create jobs.

hired more highly educated workers

If you hire highly educated workers, you have to pay them more than unqualified untrained employees.

So, from the above, ONLY moving the factories to another county, will decrease/lower your labor (salary) costs.