Which of the following statements is TRUE?
A) International trade raises wages in developing countries.
B) International trade with rich industrial countries forces people in the developing countries to work for lower wages.
C) International trade leads to job losses in both import competing industries and exporting industries.
D) Unlike other types of international trade, offshoring does not bring any gains from trade.

Question

Quizplus · Accepted Answer

International trade can raise wages in developing countries by creating jobs in export-oriented industries, which often pay higher wages than domestic market jobs. This is because exporting industries need to be competitive in the global market, which can lead to higher productivity and, consequently, higher wages.

Which of the Following Statements Is TRUE