If Relative Wages for Unskilled Workers Are Lower in a Foreign

question 115

Multiple Choice

If relative wages for unskilled workers are lower in a foreign country, we would expect:

• A) the home country to offshore tasks that require skilled workers.
• B) the foreign country to offshore tasks that require unskilled workers.
• C) the home country to offshore tasks that require unskilled workers.
• D) trade to be harmful for the home country.

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Definitions:

General Framework

A broad system or structure that provides guidance or support for activities, processes, or methodologies within a particular domain.

Ethical Issue

A problem or situation that requires a person or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).

General Framework

A foundational structure, set of guidelines, or system that serves as a basis for developing something more specific or detailed.

Ethical Issue

A moral dilemma that requires an individual or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).