Trade moves jobs from import-competing industries to export industries.

Question

Quizplus · Accepted Answer

Trade tends to shift jobs from industries that compete with imports to industries that specialize in exports. This is because when a country exports more, it needs more workers to produce those goods, while import-competing industries may need fewer workers as demand for their products decreases. However, trade can also create new job opportunities in both import and export sectors, so the net effect on employment can vary.

Trade Moves Jobs from Import-Competing Industries to Export Industries