International Trade and Its Impacts

The video discusses the impact of international trade on the labor market, highlighting how trade with third world countries affects the demand for skilled and less skilled workers. It notes the outdated estimates of these effects and the significant shifts in global trade dynamics, particularly with China and Japan. The video emphasizes the need to update the understanding of trade's impact on inequality, especially with the recent surge in trade with China and Mexico.

How does international trade affect the demand for different types of workers?

• Increases demand for less skilled workers

• Increases demand for skilled workers

• Decreases demand for engineers

• Has no effect on labor demand

What has changed in the global trade dynamics over the past decade?

• China has become a major competitive force

• The demand for less skilled workers has increased

• Trade with third world countries has decreased

• Japan has become the main competitive threat

Which country is described as having a high skill, high wage economy similar to the US?

• Mexico

• China

• India

• Japan

What is a characteristic of China's workforce according to the video?

• High skill and low wage

• Low skill and low wage

• Low skill and high wage

• High skill and high wage

Why is there a need to update the understanding of trade and inequality?

• Because the demand for engineers has decreased

• Because trade with Japan has decreased

• Due to the decrease in global trade

• Due to the surge in trade with China and Mexico

Which two countries are highlighted for their impact on trade and inequality?

• Japan and South Korea

• Russia and Canada

• China and Mexico

• India and Brazil

What is the main focus of the video regarding international trade?

• The benefits of trade for all countries

• The impact of trade on inequality and labor demand

• The environmental effects of trade

• The cultural exchange through trade