As globalization leads the United States to export more goods produced in skill-intensive sectors, real wages in these sectors will generally _____. As globalization leads the U.S. to import more goods produced in low-skilled sectors, real wages in these sectors will generally _____.

Question

Quizplus · Accepted Answer

When the United States exports more goods produced in skill-intensive sectors, it implies a higher demand for workers in these sectors, and therefore the real wages in these sectors will generally increase. On the other hand, when the U.S. imports more goods produced in low-skilled sectors, it implies a higher competition with low-skilled workers in the U.S., and therefore, the real wages in these sectors will generally decrease.

As Globalization Leads the United States to Export More Goods