During the past 30 years, income inequality in the United States has increased in part due to expanding international trade.How does expanding international trade contribute to income inequality?

Question

Quizplus · Accepted Answer

Expanding international trade allows domestic firms to employ low-skilled workers in other countries, which has led to stifled wages for similarly skilled U.S. workers. This competition puts downward pressure on the wages of unskilled workers, further exacerbating income inequality. Option A is not accurate, as increased demand for products result in more jobs and can lead to lower prices through economies of scale. Option B is also not entirely accurate, as exploitation of workers can occur regardless of international trade. Option D is not relevant to the question asked.

During the Past 30 Years, Income Inequality in the United