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Chapter 34: Q. 25RQ (page 832)

How is international trade, taken as a whole, likely to affect the average level of wages?

Short Answer

Expert verified

Increased international trade increases the level of wages.

Step by step solution

01

Definition

When the exchange of goods is done from one country to another it is called international trade.

02

Explanation

International trade has a direct effect on the level of wages as international trade increases that means more goods have to be manufactured due to which the wages paid to employees increases but at some point, it harms the employee because work pressure increases.

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