If there are large disparities in wage levels between countries, then
A) trade is likely to be harmful to both countries.
B) trade is likely to be harmful to the country with the high wages.
C) trade is likely to be harmful to the country with the low wages.
D) trade is likely to be harmful to neither country.
E) trade is likely to have no effect on either country.

Question

Quizplus · Accepted Answer

Trade can be beneficial to both countries as it allows each to specialize in producing goods where they have a comparative advantage, potentially leading to increased efficiency and economic growth despite wage disparities.

If There Are Large Disparities in Wage Levels Between Countries