Will free trade and perfect competition lead to an equalization of wage rate internationally? Explain. Why would the wage rate greatly vary between developed and developing countries, in the same sector in a real world situation, even after the adoption of free trade

Will free trade and perfect competition lead to an equalization of wage rate internationally? Explain. Why would the wage rate greatly vary between developed and developing countries, in the same sector in a real world situation, even after the adoption of free trade

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 7SCQ: If the removal of trade banters is so beneficial to international economic growth, why would a...

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Question

. Will free trade and perfect competition lead to an equalization of wage rate
internationally? Explain. Why would the wage rate greatly vary between developed
and developing countries, in the same sector in a real world situation, even after the
adoption of free trade

Definition Definition Structure of the market that exists when many buyers and sellers exchange similar commodities and prices are fixed by market forces, demand, and supply. When there is perfect competition, a single business cannot impact the price or market value of the homogenous product.

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