Question

Which of the following consequences of comparative advantage would lead workers to emigrate and find jobs in a neighboring country?

Select TWO correct answers.

Select A
An industry causes flooding that destroys people's homes and businesses. Everyone must move to find a new home and job.

Select B
Various imports from neighboring countries give consumers access to products that could not be produced in their own country.

Select C
Specialization leads to higher economic growth rates and many people can buy more than those in previous generations.

Select D
Economic competition among countries contributes to the development of better products for consumers.

Select E
Industries that cannot compete with cheaper imports from a neighboring country must lay off workers.

Answer 1

Correct answers: B and E.

- B: If consumers buy imports of goods that cannot be produced at home, those goods are produced elsewhere — creating jobs in the neighboring country that some workers may move to fill.
- E: Domestic industries that cannot compete with cheaper imports lay off workers, who may emigrate to nearby countries to find employment.

(A is a natural disaster, not comparative advantage; C and D are benefits of specialization/competition but do not directly cause workers to emigrate.)