High-productivity workers fear trade because they think they cannot compete with workers in low-productivity countries. Low-productivity workers fear trade because they think they cannot compete with workers in high-productivity countries. Which of these fears is justified?
A) The fears of workers in high-productivity countries are justified; the fears of workers in low-productivity countries are not.
B) The fears of workers in low-productivity countries are justified; the fears of workers in high-productivity countries are not.
C) Both sets of fears are justified.
D) Neither set of fears is justified.

Question

Quizplus · Accepted Answer

Trade theory suggests that countries and workers benefit from trade by specializing in areas where they have a comparative advantage, thus both high and low-productivity workers can find niches where they are competitive.

High-Productivity Workers Fear Trade Because They Think They Cannot Compete