Paul Samuelson's critique of free trade is based on the idea that the wealthier nation in the trade agreement might not recognize a net gain if the trade creates
A) the development of a monopoly.
B) a barrier from trading with other nations.
C) more job opportunities in the wealthier nation.
D) lower real wage rates in the wealthier nation.
E) an economic downturn in the poorer nation.

Question

Quizplus · Accepted Answer

Paul Samuelson argued that free trade could lead to lower real wage rates in the wealthier nation if the trade results in increased competition from lower-wage countries, potentially harming workers in the wealthier nation.

Paul Samuelson's Critique of Free Trade Is Based on the Idea