Workers in high-productivity countries fear trade because they think they cannot compete with workers in low-productivity countries. Workers in low-productivity countries fear trade because they think they cannot compete with workers in high- productivity countries. Which set of fears is justified?
A) The fears of workers in high-productivity countries are justified, but the fears of workers in low-productivity countries are not.
B) The fears of workers in low-productivity countries are justified, but the fears of workers in high-productivity countries are not.
C) Both sets of fears are justified.
D) Neither set of fears is justified.

Question

Quizplus · Accepted Answer

Trade can benefit both high and low-productivity countries through comparative advantage, where each country specializes in producing goods where they have a relative efficiency, leading to mutual gains.

Workers in High-Productivity Countries Fear Trade Because They Think They