Which of the following statements is true?

Question

Quizplus · Accepted Answer

International trade has been found to increase wages in developing countries. This is because trade opens up new markets for countries, leading to increased demand for their goods and services. This increased demand for goods and services leads to higher employment rates, which in turn drives up wages. Additionally, international trade promotes specialization, leading to greater efficiency and productivity gains, which also contribute to higher wages. This is in contrast to statement A, which is a common misconception, as studies have shown that international trade generally has a positive effect on job creation overall. Statement B is also incorrect, as while it is true that there may be some downward pressure on wages in developing countries due to increased competition, overall international trade has been found to have a positive effect on wages in these countries. Finally, statement D is also incorrect, as offshoring refers to the relocation of business processes overseas, and can lead to significant cost savings and gains from trade for businesses.

Which of the Following Statements Is True