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How Does the Expansion of International Trade Relate to Structural

Question 84

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How does the expansion of international trade relate to structural unemployment in a country?


A) As trade expands, the increase in imports reduces the demand for labor, which leads to an increase in unemployment.
B) Expansion of exports means that additional demand for labor will raise wages, which leads to a reduction in unemployment.
C) Expansion of trade causes wages and employment opportunities to rise.
D) As the country's output becomes more specialized based on comparative advantage, the mix of skills demanded in labor markets changes, which leads to more structural unemployment, at least temporarily.

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