The belief that importing goods from low-wage countries will hurt the standard of living of workers in the importing country is known as the:

Question

Quizplus · Accepted Answer

The belief that importing goods from low-wage countries will hurt the standard of living of workers in the importing country is known as the pauper labour fallacy. This theory suggests that workers in the importing country will be forced to compete with the lower wages of workers in the exporting country, resulting in a decline in wages and an overall decrease in economic welfare. However, this theory has been largely discredited by economists who argue that international trade can actually lead to increased economic growth and higher wages in both the importing and exporting countries.

The Belief That Importing Goods from Low-Wage Countries Will Hurt