Trade makes rich people richer and poor people poorer.

Question

Quizplus · Accepted Answer

This statement is a common misconception. While trade can create income inequality, it also has the potential to reduce poverty and increase access to goods and services for many individuals. The impact of trade on income distribution depends on various factors, such as the policies in place, the structure of the economy, and the level of inequality before trade liberalization. Therefore, it is not accurate to make a blanket statement that trade always benefits the rich and harms the poor.

Trade Makes Rich People Richer and Poor People Poorer