Workers in high-wage countries cannot improve their real income when they trade with low-wage countries.

Question

Quizplus · Accepted Answer

Workers in high-wage countries can benefit from trading with low-wage countries by accessing cheaper goods and services. However, this may potentially result in job losses in certain industries due to outsourcing and competition from cheaper imports. Overall, the impact of trade on workers' real income is complex and depends on various factors such as the specific industries and the distribution of gains from trade within each country.

Workers in High-Wage Countries Cannot Improve Their Real Income When