Question

. The argument that trade generates gains for all workers may not be true because: A) A more realistic assumption includes capital and land as factors of production and recognizes that trade will generate gains for some factors and losses for others. B) Greedy corporations exploit workers. C) Technology gains are concentrated among low-skill workers. D) Some workers lack skills and training and cannot find jobs.

Answer 1

Answer:

A) A more realistic assumption includes capital and land as factors of production and recognizes that trade will generate gains for some factors and losses for others.

Explanation:

While it is true that trade benefits all nations in general terms because trade is a positive-sum game, it is also true that the benefits might not go to the factors of production in the same proportion.

Some forms of trade, for example, trade of financial instruments, may benefit the owners of capital disproportionally in respect to workers, who often do not own capital assets in the form of financial instruments.