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Some Proponents of Trade Sanctions Argue for Changes in Policy

Question 46

Multiple Choice

Some proponents of trade sanctions argue for changes in policy because they fear low standards will be used to capture markets and foreign investment.While theoretically possible,there is little or no support for the view that countries use low labor standards this way,because


A) countries with low labor standards generally have trouble attracting foreign investment.
B) low standards can change a country's comparative advantage.
C) it is impossible to lower labor standards.
D) countries would not have an incentive to have low standards.

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