"Trade is generally harmful if there are large disparities between countries in wages."
A)This is generally false.
B)This is true if the trade partner ignores child labor laws.
C)This is generally true.
D)Trade theory has nothing to say about this issue.
E)This is true if the trade partner uses prison labor.

Question

Quizplus · Accepted Answer

Trade theory, particularly the theory of comparative advantage, suggests that trade can be beneficial even when there are wage disparities, as countries can specialize in producing goods where they have a relative efficiency.

"Trade Is Generally Harmful If There Are Large Disparities Between