As international trade increases, it contributes to a shift in jobs away from industries where that economy does not have a(n) _______ advantage and toward industries where it has a(n) _______
Advantage.
A) absolute; absolute
B) comparative; comparative
C) comparative; competitive
D) comparative; absolute

Question

Quizplus · Accepted Answer

The correct answer is B) comparative; comparative. This is because international trade encourages countries to specialize in industries where they have a comparative advantage, meaning they can produce goods at a lower opportunity cost compared to other countries. This leads to a shift in jobs towards industries where a country is relatively more efficient and away from those where it is less efficient compared to its trading partners.

As International Trade Increases, It Contributes to a Shift in Jobs