Question

Many people believe that because wages are lower in developing countries than in developed countries, competition from developing countries in goods traded internationally will soon eliminate large numbers of jobs in developed countrie.

Answer 1

The given statement is true.

Explanation:

Many believe that the competition between development countries and internationally-traded goods soon eliminates large amount of jobs in developed countries as wages are lower in developing nations than in developed countries.  

Today, modern technology in developed nations leads to higher productivity, which represents a higher payroll.

Even with the newest technology, production and wages in developing nations will stay lower for decades than in the developed nations, because developing nations have better infrastructure and better trained workers. More technological developments are being transported ever quicker over borders.