Question: Nutco is a cashew - processing firm that operates in the developing country of Ecotopia. After procuring raw cashews from farms around the country, Nutco

Nutco is a cashew-processing firm that operates in the developing country of Ecotopia. After procuring raw cashews from farms around the country, Nutco processes them using a labor-intensive method. The workers at Nutco recently demanded a 20 percent increase in their overtime wage rate. All members of Nutco's labor union, which was a substantial proportion of the company's labor force, went on an unannounced strike when the management only agreed to a 5 percent hike. During negotiations that followed, the management informed the union leader that this was a take-it-or-leave-it offer. The union leader was not convinced and declared that the workers would not come back to work unless their demands were fully met. Kurt Whitman, Nutco's human resources manager, however thinks that the strike will end soon because of the company's strong stand.
Which of the following, if true, will strengthen Kurt's claim that the workers will accept the 5 percent hike and call off the strike?
A. The government recently introduced a price floor for raw cashews procured by processing firms like Nutco.
B. The production of processed cashews in a neighboring country, Demerus, has increased significantly due to tax sops and subsidies.
C. In order to make Ecotopia more business-friendly, the government made it mandatory for workers to give firms 2 weeks' notice before going on strike.
D. The canning industry in Ecotopia is still in its infancy; employment is high but output produced is low.
E. Firms in this industry import cheaper raw cashews and process them for exports.X
 Nutco is a cashew-processing firm that operates in the developing country

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