Question 3

Towards the middle of chapter one, Wheelan was talking about how firms not only choose what goods or services to produce but how to produce them. His example was stepping off the plane in Kathmandu and seeing people cutting grass by hand with sickles and explaining how labor in Nepal is cheap but lawn mowers are expensive. The question firms face on a daily basis is what is going to make the most money in the long run? The book then goes on to explain that is why sometime twenty thousand workers are laid of or why they are building a plant in Vietnam over building one here in the United States. I would say that this a positive thing because although it may be frightening to get laid off and have to find a new job these firms are thinking of the long run. We need people to be thinking of what will benefit us not just now but in the long run and that exactly what they are doing.