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Chapter 20: Q. 23 (page 490)

Does international trade, taken as a whole, increase the total number of jobs, decrease the total number of jobs, or leave the total number of jobs about the same?

Short Answer

Expert verified

Increases.

Step by step solution

01

Step1. Introduction 

International trade is the exchange of goods and services across the global/international borders. It refers to the free trade across countries.

02

Step2. Explanation

International trade enables the exchange of goods and services. It increases the domestic competition and pressurizes the domestic players to produce at an international standard. It further lets them export to varying countries leading to an increased demand and production. It accumulates trade wealth and gains, further enhancing the production due to capital accumulation.

All of it induces increased production, for which the firms will demand labor leading to creation of more and more job opportunities.

Hence, it international trade increases the job opportunities.

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