Some observers opposing free trade argue that when we buy shoes from China, Australian workers lose their jobs. The fact of the matter is that
A) free trade creates jobs in export industries.
B) most jobs lost because of free trade pay less than the poverty level.
C) the jobs lost are really in China.
D) no Australian worker has actually lost a job because of free trade.

Question

Quizplus · Accepted Answer

Free trade often leads to job creation in industries where a country has a comparative advantage, meaning it can produce goods at a lower opportunity cost than other countries. This can lead to increased exports and job growth in those sectors, offsetting job losses in industries that are less competitive globally.

Some Observers Opposing Free Trade Argue That When We Buy