The effect of trade on specialized employees of import-competing industries will be ________ jobs and ________ pay because they are relatively ________.
A) fewer; lower; immobile
B) fewer; lower; mobile
C) more; lower; immobile
D) more; higher; mobile
E) more; higher; immobile

Question

Quizplus · Accepted Answer

Trade can lead to a decrease in jobs and lower pay for specialized employees in import-competing industries because they are immobile, meaning they cannot easily switch to another industry. As imports increase, the demand for domestically produced goods decreases, leading to a decrease in demand for workers in import-competing industries. Additionally, foreign workers with lower wages can compete with domestic workers, leading to lower pay for those who keep their jobs.

The Effect of Trade on Specialized Employees of Import-Competing Industries