The main explanation for why the cheap foreign-labour argument is a poor reason for restricting international trade is that:
A) workers who get paid less tend to have lower productivity than those who get paid more.
B) all firms and workers gain when there are no restrictions on international trade.
C) infant industries, such as steel and automobiles, need to be protected.
D) specialisation and free trade usually raise the prices of all the traded goods, so that the workers can get paid more.
E) labour costs tend to be the same worldwide in the long run because of worker mobility.
Correct Answer:
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