Answered step by step
Verified Expert Solution
Question
1 Approved Answer
content area Part 1 Suppose you are explaining the benefits of free trade and someone states, I don't understand all the principles of comparative advantage
content area Part 1 Suppose you are explaining the benefits of free trade and someone states, "I don't understand all the principles of comparative advantage and gains from trade. I just know that if I buy something produced in Canada, I create a job for a Canadian, and if I buy something produced in Brazil, I create a job for a Brazilian." Are they correct in asserting that free trade costs Canada jobs? A. No, since free trade creates more jobs for some of the Canadian economy's industries than it costs Canada. B. Yes, since any time we buy an imported good we ship a job abroad but do not create a job in Canada to compensate for the job loss. C. Yes, since purchasing a domestically-produced good helps Canadian economy but purchasing an imported good helps a foreign economy. D. No, since international trade does not affect jobs, only domestic taxes and regulations do
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started