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:
- 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.
- 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.
- 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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