Solved

The Owners of Steel Companies in the US Have Argued

Question 14

Multiple Choice

The owners of steel companies in the US have argued that they need to be protected from foreign competition because the wages paid to workers in foreign countries are significantly lower than the wages paid to US steel workers. What is the best economic response to this argument?


A) Even though US workers earn more than workers in foreign countries, the United States would still have an absolute advantage in the production of steel and should therefore be able to compete internationally.
B) The steel industry should be protected from foreign competition because low foreign wages are an unfair barrier to trade.
C) It is essential to protect the steel industry so that there are no additional job losses in this industry.
D) Wages reflect productivity and so, if US steel workers are more productive than workers in foreign countries, then the US steel industry should still be able to compete internationally.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents