PE || Does trade with other countries destroy domestic jobs?

How does specialization contribute to economic growth?

• Specialization leads to decreased efficiency and economic stagnation.
• Specialization results in a lack of diversity in the economy, hindering growth.
• Specialization causes an increase in production costs, slowing down economic development.
• Specialization allows for a focus on producing goods and services where there is a comparative advantage, leading to increased efficiency and economic growth

1. Why does international trade not necessarily destroy domestic jobs?

• International trade leads to a decrease in domestic job opportunities
• International trade only benefits foreign workers, not domestic workers
• International trade always results in job losses in the domestic market
• As economies grow due to trade, there is increased demand for both high-skilled and low-skilled workers, creating more job opportunities

How can access to cheaper inputs from abroad benefit domestic businesses?

• Cheaper inputs from abroad can cause domestic businesses to lose their customer base.
• • Access to cheaper inputs reduces production expenses, attracts buyers, and enhances profitability

• Cheaper inputs from abroad can lead to increased taxes for domestic businesses.
• Cheaper inputs from abroad may result in decreased quality of products for domestic businesses

1. What impact does investing in domestic production have on costs within a country?

• Investing in domestic production has no impact on costs within a country.
• Investing in domestic production increases costs within a country

• • Investing in domestic production leads to more affordable construction and processing costs.

• Investing in domestic production leads to higher taxes within a country.

1. According to Acharya and Keller (2008), how can imports enhance a firm’s productivity?

• Imports can decrease a firm's productivity by limiting access to specialized inputs
• • Imports can enhance productivity by reducing input costs and fostering a learning effect through advanced technology diffusion

• Imports can hinder a firm's productivity by distracting from core competencies
• Imports can reduce competition, leading to inefficiency and lack of innovation

1. What benefit does trade offer to consumers?

• Trade allows consumers to access a variety of goods and services that are not available domestically or produced in small amounts, providing more choices that align with their preferences, needs, and budgets

• Trade does not impact consumers in any way
• Trade leads to lower quality products for consumers
• Trade limits consumer choices and increases prices

How can enhancing the quality attributes of domestically produced rice impact its competitiveness?

• Improving rice quality can make domestically produced rice highly competitive with imported rice, satisfying consumer preferences and contributing to Africa’s rice value chains

• By reducing the shelf life of the rice, making it less desirable to consumers
• By increasing the production cost, resulting in lower prices and reduced market competitiveness
• By limiting the availability of the rice, causing a decrease in demand and market share

How does access to cheap raw materials and components benefit domestic businesses?

• Access to cheap raw materials and components benefits domestic businesses by increasing production costs
• Access to cheap raw materials and components benefits domestic businesses by decreasing profit margins
• Access to cheap raw materials and components benefits domestic businesses by reducing competitiveness in the market
• • Access to cheap raw materials, components, and equipment significantly reduces production costs, leading to improved profits and increased competitiveness in the market

1. According to the passage, what is the net effect of trade on jobs?

• Trade only benefits high-skilled workers
• Trade has no impact on job creation
• The net effect of trade is often a reallocation of jobs rather than outright destruction

• Trade always leads to job losses

1. What impact did equitization and enterprise laws have on the Vietnamese manufacturing industry?

• The restructuring of state-owned enterprises

• Reallocating resources to more efficient private firms

• Resulting in higher productivity levels and overall economic growth.

• All of the above