Textbook examples of trade between two nations are simplified in order to show how two nations both benefit from trade.These examples are misleading because
A)in the real world,rich countries can take advantage of poor countries.
B)they do not account for the reduction in wages that occurs in both countries as a result of trade.
C)some individuals in both countries may be made worse off because of trade.
D)trade restrictions are likely to be imposed as trade grows over time.

Question

Quizplus · Accepted Answer

While textbook examples of trade often show mutual benefits, in reality, some individuals may be negatively impacted by trade. It is possible for certain sectors of the economy to experience job losses or wage reductions due to increased competition from imports, and this can harm some workers in both countries engaged in trade. While trade is generally seen as beneficial, it is important to recognize that it can have both winners and losers.

Textbook Examples of Trade Between Two Nations Are Simplified in Order