Increased international trade increases the demand for a country's exports, _____ the demand for workers in export industries, and _____ their wages.

Question

Quizplus · Accepted Answer

In industries where a country's foreign competition is weak, demand for the country's exports will increase and thereby increase the demand for workers in those industries. With increased demand for labor, we also see an increase in real wages.

Increased International Trade Increases the Demand for a Country's Exports