Given the Emphasis on the Status Quo by Prospect Theory

question 42

Multiple Choice

Given the emphasis on the status quo by prospect theory, in international trade actors may find it easier to

• A) agree on how to share the losses than on how to distribute the gains from trade.
• B) come to a trade agreement in which both sides equally gain.
• C) agree on how to distribute the benefits from a trade agreement than on how to share the losses.
• D) walk away from a trade deal when it is clearly not in their favor.

---

Definitions:

Unions

Organizations formed by workers from related fields that work together to protect their collective interests, such as better wages, working conditions, and benefits.

Secondary Strikes

Secondary strikes involve workers going on strike in solidarity with workers from a different company or industry, aiming to support another group's strike or labour dispute.

Globalization

The process of increased interconnectedness among countries, primarily in economics, politics, and culture, due to advances in communication and transportation.

International Trade

The exchange of goods, services, and capital between countries, driven by a desire for economic benefit and efficiency.