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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Definitions:

Capable of Survival

Having the means, skills, or conditions necessary to continue existence or operations.

Departmentalization

The organizational practice of dividing a business into distinct departments, each being responsible for certain tasks or processes.

Jobs Grouping

The practice of organizing positions into categories or clusters based on similar duties, responsibilities, or characteristics.

Cultural Development

The process through which a culture evolves over time, including changes in beliefs, practices, art, and social structures.