What interesting observation does Wood (1994)make about the effects of trade with developing countries on equality?
A)that trade with developing countries ensures the growth in wealth of the industrialized country as it makes wage costs cheaper and labour more efficient
B)that trade with developing countries actually creates inequality in the industrialized country by reducing demand for unskilled labour by more than 20%
C)that there is no rhyme or reason as to the effects of globalization on wealth and equality in either the developed or developing countries
D)that globalization always benefits the industrialized country and almost never the developing countries

Question

Quizplus · Accepted Answer

Wood (1994) observes that trade with developing countries can lead to increased inequality in industrialized countries, particularly by reducing the demand for unskilled labor, which can have a significant impact on wage disparities and employment levels for less skilled workers.

What Interesting Observation Does Wood (1994)make About the Effects of Trade