The effect of international trade on the prices paid to the factors of production:
A) are long-run changes.
B) are short-run changes.
C) are non-existent and should not be considered.
D) are secondary effects and only partially beneficial to both countries.
E) None of the above

Question

Quizplus · Accepted Answer

International trade affects the prices paid to the factors of production in the long run, as economies adjust to new levels of demand and supply, leading to changes in wages, rents, and other factor payments.

The Effect of International Trade on the Prices Paid to the Factors