Textbook Examples of Trade Between Two Nations Are Simplified in Order

question 61

Multiple Choice

Textbook examples of trade between two nations are simplified in order to show how two nations both benefit from trade.These examples are misleading because

• A)in the real world,rich countries can take advantage of poor countries.
• B)they do not account for the reduction in wages that occurs in both countries as a result of trade.
• C)some individuals in both countries may be made worse off because of trade.
• D)trade restrictions are likely to be imposed as trade grows over time.

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Definitions:

Labor Costs

The total expense incurred by employers for the salaries, wages, benefits, and other forms of compensation paid to employees.

Electrical Components

Basic elements used in electrical systems, including resistors, capacitors, transistors, and circuits, essential for the functioning of electronic devices.

Bonus

A financial reward provided to employees in addition to their regular salary, often based on performance.

Gainsharing Program

A system in which a business shares cost savings or productivity gains with its employees, fostering employee engagement and performance boost.