"Trade is generally harmful if there are large disparities between countries in wages."
A) This is generally true.
B) This is generally false.
C) Trade theory has nothing to say about this issue.
D) This is true if the trade partner ignores child labor laws.
E) This is true if the trade partner uses prison labor.

Question

Quizplus · Accepted Answer

Trade theory, particularly the theory of comparative advantage, suggests that trade can be beneficial for all countries involved, regardless of wage disparities. It posits that countries will specialize in producing goods for which they have a comparative advantage, leading to increased efficiency and gains from trade for all parties involved.

"Trade Is Generally Harmful If There Are Large Disparities Between