Lower slope = lower opportunity cost for “x” (comparative advantage)
Steeper slope = lower opportunity cost for the “y” variable
-why is manufacturing moving to china?
– cheaper; maximize profit; due to lack of regulation (safety, environment, wages)
– why is labor cheap?
– opportunity cost to work in factory is very low (farming to stay alive… not good)
– what is the problem?
– ****all eggs in one basket (no diversity)**** (key problem if asked on test)
– jobs lost (not true because we never had many factories here.. other countries)
-be able to make a graph about it
-be able to talk about the problems
-be able to talk about opportunity cost