Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 20: Q. 6 (page 490)

Do the jobs for workers in low-income countries that involve making products for export to high-income countries typically pay these workers more or less than their next-best alternative?

Short Answer

Expert verified

More.

Step by step solution

01

Step1. Introduction

International trade refers to the exchange of goods and services between countries across the globe. This exchange is referred to as the imports and exports.

02

Step2. Explanation

The jobs for workers in low-income countries that involve making products for export to high-income countries typically pay these workers more (or same) than the next best alternative. This is called as the opportunity cost. It is so because had they not paid them same or more, mostly all labor would rather choose to migrate and shift to that next best alternative than continuing to work here. This act as a way of incentivizing them. Hence, they have to pay them the same or more.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Explain how trade barriers raise wages in protected industries by reducing average wages economy-wide.

How do you think Americans would feel if other countries began to urge the United States to increase environmental standards?

Trade has income distribution effects. For example,

suppose that because of a government-negotiated

reduction in trade barriers, trade between Germany and the Czech Republic increases. Germany sells house paint to the Czech Republic. The Czech Republic sells alarm clocks to Germany. Would you expect this pattern of trade to increase or decrease jobs and wages in the paint industry in Germany? The alarm clock industry in Germany? The paint industry in Czech Republic? The

alarm clock industry in Czech Republic? What has to happen for there to be no increase in total unemployment in both countries?

If trade barriers hurt the average worker in an economy (due to lower wages), why does the government create trade barriers?

How can governments identify good candidates for infant industry protection? Can you suggest some key characteristics of good candidates? Why are industries like computers not good candidates for infant industry protection?
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free