Severe imperfections in the labor market arise from immobility of workers due to immigration barriers. As a response, firms should consider
A. Moving to the workers.
B. Moving to countries where labor services are the lowest in absolute terms.
C. Moving to countries where labor services are underpriced relative to productivity.
D. Hiring illegal immigrants.
Answer:C
Severe imperfections in the labor market arise from immobility of workers due to immigration barriers. As a response, firms should consider
A. Moving to the workers. B. Moving to countries where labor services are the lowest in absolute terms. C. Moving to countries where labor services are underpriced relative to productivity. D. Hiring illegal immigrants.