Opening trade between a nation that has "cheap labor" and one that has "expensive labor" will

Question

Quizplus · Accepted Answer

Opening trade between a nation that has "cheap labor" and one that has "expensive labor" will lead to an increase in the efficiency of resource allocation, higher levels of production, and lower prices for consumers in both countries. This will increase the standard of living in both countries. While some workers in the high-cost country may lose their jobs, overall there will be a net increase in employment in both countries as new opportunities arise from the increased trade.

Opening Trade Between a Nation That Has "Cheap Labor" and One