International trade tends to cause welfare losses to at least some groups in a country ?
Correct answer: A. The less mobile the country's resources
- A. The less mobile the country's resources
- B. The more mobile the country's resources
- C. The lower the country's initial living standard
- D. The higher the country's initial living standard
Explanation
Trade shifts production toward expanding industries and away from import-competing industries, causing adjustment losses for some groups. These losses are greater when labour and other resources are less mobile and cannot move easily to new uses.
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