In recent years, the amount of international trade in which the United States engages has increased. Which of the following accurately describes the effect(s) on labor demanded by firms in the United States?
A)The demand for both skilled and unskilled labor has increased.
B)The demand for both skilled and unskilled labor has decreased.
C)The demand for skilled labor relative to unskilled labor has risen.
D)The demand for unskilled labor relative to skilled labor has risen.

Question

Quizplus · Accepted Answer

The increase in international trade often leads to an increase in demand for skilled labor, as firms need workers with the skills necessary to compete in a global market. The demand for unskilled labor is likely to decrease as firms may find it cheaper to outsource low-skilled tasks to other countries where labor costs are lower. Therefore, the demand for skilled labor relative to unskilled labor increases.

In Recent Years, the Amount of International Trade in Which