International trade can have important effects on the distribution of income because
A) the more powerful country dictates the terms of trade.
B) some resources are immobile in the short run.
C) different countries use different currencies.
D) of government corruption.
E) rich countries take advantage of poor countries.

Question

Quizplus · Accepted Answer

International trade can lead to a redistribution of income between different groups within a country because in the short run, some resources such as labor and capital are immobile and cannot quickly move to new industries or regions that might benefit from increased trade. This can lead to some individuals or groups losing out while others gain from trade. Choices A, C, D, and E are not directly related to the distribution of income.

International Trade Can Have Important Effects on the Distribution of Income