Final answer:
People's product preferences do not necessarily become more similar as they become more educated and their living conditions improve. Highly educated individuals tend to favor trade liberalization. As people enjoy a higher standard of living, they are more likely to support market-friendly institutions.
Step-by-step explanation:
According to research, people's product preferences do not necessarily become more similar as they become more educated and their living conditions improve. However, education levels can influence preferences towards globalization and market liberalization. Highly educated individuals tend to be more likely to favor trade liberalization, despite the potential winners and losers in specific industry sectors.
The preferences of highly skilled individuals towards trade are not solely based on their personal material gains or losses. Possible explanations include the ease of finding new jobs in different industries and the benefits of better quality and cheaper exports in the domestic market.
Moreover, as people enjoy the benefits of a higher standard of living, they may be more likely to support market-friendly institutions that contribute to this standard of living.