
Between 1976 and 2010, income inequality in Canada has increased in part due to expanding international trade.How does expanding international trade contribute to income inequality?
A) It increases the demand for a wide array of products which in turn increases prices beyond the reach of average income individuals.
B) It allows producers to exploit workers and reduce the wages they are willing to pay workers.
C) Domestic firms can now hire low-skilled workers anywhere in the world, putting Canadian workers in competition with foreign workers. This has caused the wages of unskilled workers to be depressed relative to the wages of other workers.
D) It reduces the cost of producing goods and therefore lowers the value of labour's services.
Correct Answer:
Verified
Q99: Figure 15.2 Q102: Suppose the equilibrium price and quantity of Q107: What is the low income cut-off? Q109: Figure 15.4 Q144: What is the difference between a marginal Q184: For a given supply curve, the deadweight Q185: Explain the effect of price elasticities of Q194: If the government is most interested in Q209: As the value of the Gini coefficient Q217: Figure 18-4 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
![]()
A)It is
![]()
![]()