A major diﬃculty with the argument that trade barriers are necessary because foreign workers are paid low wages is that

Question

Quizplus · Accepted Answer

Wage rates and labor productivity are directly related because higher productivity can lead to higher wages, as workers are able to produce more value. The argument for trade barriers based on low foreign wages overlooks the possibility that lower wages might reflect different productivity levels.

A Major Diﬃculty with the Argument That Trade Barriers Are