Which of the following statements is true?
A) International trade raises wages in developing countries.
B) International trade with rich industrial countries forces people in the developing countries to work for lower wages.
C) International trade leads to job losses in both import competing industries and exporting industries.
D) Unlike other types of international trade, offshoring does not bring any gains from trade.

Question

Quizplus · Accepted Answer

International trade can increase the demand for labor, leading to higher wages in developing countries. This is because when a country specializes in producing goods in which it has a comparative advantage and trades with other countries, it can produce more efficiently and increase its income. This increased income can then be used to pay higher wages to workers.

Which of the Following Statements Is True