Author Question: Textbook examples of trade between two nations are simplified in order to show how two nations both ... (Read 214 times)

aabwk4 · **on:** Jun 29, 2018

Textbook examples of trade between two nations are simplified in order to show how two nations both benefit from trade. These examples are misleading because

A) some individuals in both countries may be made worse off because of trade.
B) trade restrictions are likely to be imposed as trade grows over time.
C) they do not account for the reduction in wages that occurs in both countries as a result of trade.
D) in the real world, rich countries can take advantage of poor countries.

Question 2

Refer to Figure 11-1. Many countries in Africa strongly discouraged and prohibited foreign direct investment in the 1950s and 1960s. By doing so, these countries were essentially preventing a moment from

A) A to B. B) B to C. C) D to C. D) B to A.