asked 214k views
3 votes
As international trade increases, it contributes to a shift in jobs away from industries where that economy does not have a(n) __________ advantage and toward industries where it has a(n) ___________ advantage.

A. absolute; absolute
B. comparative; comparative
C. comparative; competitive
D. comparative; absolute

1 Answer

6 votes

Final answer:

As international trade rises, jobs shift from sectors where a country lacks comparative advantage to those where it holds comparative advantage, influencing wages and job distribution unevenly.

Step-by-step explanation:

As international trade increases, it leads to a reallocation of jobs within an economy. Specifically, this shift happens away from industries where a country lacks comparative advantage and toward the sectors where it possesses a comparative advantage. A comparative advantage exists when a country can produce a good or service at a lower opportunity cost than its trade partners.

The overall impact on jobs and wages is influenced by the structure of the labor market and the adaptability of various industries. While global trade can enhance productivity and elevate average wages, it might result in disparities, benefiting some workers and negatively affecting others. Therefore, the correct completion for the given statement is: As international trade increases, it contributes to a shift in jobs away from industries where that economy does not have a comparative advantage and toward industries where it has a comparative advantage.

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.