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The Cheap Foreign Labor Argument Is a Poor Reason for Restricting

Question 111

Multiple Choice

The cheap foreign labor argument is a poor reason for restricting international trade because


A) the labor productivity of workers who are paid less is lower than the labor productivity of those who are 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) specialization and free trade usually raise the prices of all traded goods, so that the workers are paid more
E) long run labor costs tend to be the same worldwide because of workers' mobility

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