When a rich nation buys a product made in a poor nation, in the poor nation the demand for labour _______ And the wage rate _______ .
A) decreases; rises
B) increases; falls
C) increases; rises
D) decreases; falls

Question

When a rich nation buys a product made in a poor nation, in the poor nation the demand for labour _______  And the wage rate _______ .
A) decreases; rises
B) increases; falls
C) increases; rises
D) decreases; falls

Quizplus · Accepted Answer

When a rich nation buys a product made in a poor nation, the demand for labor in the poor nation increases due to higher production needs, and as a result, the wage rate also tends to rise due to the increased demand for workers.

When a Rich Nation Buys a Product Made in a Poor