Which of the Following Statements Is True About International Trade

question 185

Multiple Choice

Which of the following statements is true about international trade?

• A) In the long-run, trade not only reduces employment in some sectors but also reduces employment in the economy as a whole.
• B) In the short-run, trade can reduce employment in some sectors and also in the economy as a whole.
• C) Owners of factors of production used in industries in which a nation lacks a comparative advantage are more likely to gain from trade than those owners of resources used in industries in which a country has a comparative advantage.
• D) Countries with relatively higher wage rates are more likely to be hurt by international trade.

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