The effect of trade on specialized employees of import-competing industries will be ________ jobs and ________ pay because they are relatively ________.
A) more; lower; immobile
B) more; higher; immobile
C) fewer; lower; immobile
D) more; higher; mobile
E) fewer; lower; mobile

Question

Quizplus · Accepted Answer

Trade can lead to a decrease in jobs in import-competing industries as they face competition from foreign goods. Specialized employees in these industries are relatively immobile as their skills may not be easily transferable to other industries. As a result, they may have to accept lower pay in order to remain employed in their current industry or seek employment in a different industry, which can further reduce their pay. Therefore, the correct choice is C as it reflects the expected outcome of trade for specialized employees in import-competing industries.

The Effect of Trade on Specialized Employees of Import-Competing Industries