If There Are Large Disparities in Wage Levels Between Countries

question 8

Multiple Choice

If there are large disparities in wage levels between countries, then

• A) trade is likely to be harmful to both countries.
• B) trade is likely to be harmful to the country with the high wages.
• C) trade is likely to be harmful to the country with the low wages.
• D) trade is likely to be harmful to neither country.
• E) trade is likely to have no effect on either country.

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Definitions:

Standard Cost

A predetermined cost of manufacturing, purchasing, or using a product or service, used in budgeting and variance analysis.