Suppose Vietnam has a comparative advantage in producing trousers. The price of a trouser is 1200 Vietnamese Dong (VND) in Vietnam when it has no trading relationships with other countries. If Vietnam engages in international trade, what will happen to the price of a trouser in Vietnam under that scenario? It will become more than 1200 VND. OIt will become less than 1200 VND. It will remain equal to 1200 VND. None of the other three answer choices. The groups that are negatively impacted by international trade are not fully compensated for their losses from trade. Which of the following factor is a potential reason behind the absence of provision of compensation to the individuals who lose from trade? O It is difficult to detect the groups which accrued losses from international trade. O It is challenging to determine the magnitude of losses of people that were financially hit by international trade. It is difficult to establish that international trade was the primary factor behind the worsening economic conditions of people who were perceived to be negatively impacted by international trade.
Suppose Vietnam has a comparative advantage in producing trousers. The price of a trouser is 1200 Vietnamese Dong (VND) in Vietnam when it has no trading relationships with other countries. If Vietnam engages in international trade, what will happen to the price of a trouser in Vietnam under that scenario? It will become more than 1200 VND. OIt will become less than 1200 VND. It will remain equal to 1200 VND. None of the other three answer choices. The groups that are negatively impacted by international trade are not fully compensated for their losses from trade. Which of the following factor is a potential reason behind the absence of provision of compensation to the individuals who lose from trade? O It is difficult to detect the groups which accrued losses from international trade. O It is challenging to determine the magnitude of losses of people that were financially hit by international trade. It is difficult to establish that international trade was the primary factor behind the worsening economic conditions of people who were perceived to be negatively impacted by international trade.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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