The Main Explanation for Why the Cheap Foreign Labor Argument

question 108

Multiple Choice

The main explanation for why the cheap foreign labor argument is a poor reason for restricting international trade is that:

• A) workers who get paid less tend to have lower productivity than those who get paid more.
• B) all firms and workers gain when there are no restrictions on international trade.
• C) infant industries such as steel and automobiles need to be protected.
• D) specialization and free trade usually raise the prices of all the traded goods, so that the workers can get paid more.
• E) labor costs tend to be the same worldwide in the long run because of worker mobility.

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Definitions:

Organs

Structures consisting of various tissues that perform specific functions within an organism.

Cell

The basic structural, functional, and biological unit of all living organisms, enclosed by a plasma membrane and containing organelles and genetic material.

Tissue Types

The human body contains four basic types of tissues: epithelial, connective, muscle, and nervous tissues, each serving specific functions.

Molecules

The smallest particle of a chemical substance that can exist independently while retaining the chemical properties of the substance, consisting of two or more atoms bonded together.