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.

Question

Quizplus · Accepted Answer

When relative wages for unskilled workers are lower in a foreign country, it is cost-effective for the home country to offshore tasks that require unskilled labor to the foreign country to take advantage of the lower wages.

If Relative Wages for Unskilled Workers Are Lower in a