Question 3 (1 point) D Which statement is generally NOT true with regard to the

Question

Question 3 (1 point) D Which statement is generally NOT true with regard to the effect of trade on wages in developing countries? a) Working conditions, although often less pleasant than in developed nations, are generally improved with foreign investment. companies. countries b) Wages offered by foreign companies are generally higher than wages offered by local c Foreign companies tend to reduce the overall number of jobs available in developing d) Foreign companies generally pay lower wages in developing countries than they do back home.

Explanation / Answer

Option c is not true with regard to the effect of trade on wages in developing countries.

This is because foreign companies do not try to reduce jobs available in the developing countries because the wages which they pay to workers in developing countries are much lower what they pay in their home country. It means there is no incentive to reduce jobs in developing countries.

Hence option C is the correct answer.

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