Question

Of the following statements about trade, which is NOT true? Trade generates jobs in both export and import sectors of an economy. The gains from open trade are always greater than the losses. Open trade and investment does create winners and losers. Trade does not influence culture. Trade is the two-way flow of exports and imports of

Answer 1

Trade can influence culture and while it generates jobs in both export and import sectors, it can also create winners and losers, and the gains from trade may not always be greater than the losses.

Step-by-step explanation:

Among the statements about trade, the one that is NOT true is that trade does not influence culture. Trade can significantly impact cultural exchange, as goods and services that cross borders often carry cultural ideas and practices. On the other hand, it is true that trade generates jobs in an economy's export and import sectors and that open trade and investment can create winners and losers, recognizing that not all parties benefit equally from trade agreements. Additionally, the assertion that the gains from open trade are always greater than the losses is debatable, as the distribution of gains and losses can vary widely among different groups within a country. While trade ideally raises the average level of wages by increasing productivity, it could also result in shifts in employment that favor industries with a comparative advantage, thereby affecting jobs, wages, and working conditions.

Answer 2

Trade does not influence culture.

Step-by-step explanation:

The gains from international trade are the result of countries' specialization in the production of those goods that they have productive efficiency. Countries export these goods and import those goods whose domestic production would not be efficient compared to other countries.

With the advent of globalization, trade between countries has increased considerably. Through international trade, new goods and services are introduced into countries, including affecting leisure, culture and behavior. Thus, it is not correct to say that international trade does not influence the culture of the countries. On the contrary, international trade encourages cultural plurality.