In the long run, international trade

Question

Quizplus · Accepted Answer

International trade does not affect the natural level of employment or the real wage in the long run. While there may be short-term effects on employment and wages, in the long run, trade allows countries to specialize in their comparative advantage and trade with other countries who can produce goods and services more efficiently, leading to overall economic growth and higher living standards. However, it is important for governments to ensure that workers who may be negatively impacted in the short term by trade are provided with assistance and reskilling opportunities to transition to other industries.

In the Long Run, International Trade