Final answer:
International trade typically shifts jobs towards sectors where a country has a comparative advantage, which should raise the average level of wages through increased productivity. However, the impact on wages is not uniform; benefits may accrue more to workers in advantageous industries while others may lose out.
Step-by-step explanation:
The question of how international trade affects the average level of wages is a complex one, with multiple factors at play. International trade tends to shift jobs away from sectors in which a nation lacks a comparative advantage and towards sectors where it excels. This dynamic can impact the wage levels in different industries in distinct ways.
As global trade increases productivity overall, it is expected to raise the average level of wages. However, these benefits might not be evenly spread across the workforce. Workers in industries that the country specializes in might see wage gains, while those in sectors that the country moves away from could experience wage stagnation or decline. The balance of these effects depends on the labor market structure and the ability of the economy to adjust. It's crucial to understand that while increased trade can raise wages on average, it also has the potential for both positive and negative impacts on different groups of workers.
In supporting the idea that international trade should raise the average wage by increasing productivity, it is also important to note that the resulting gains and losses may not be evenly distributed. Some workers may greatly benefit from the new opportunities presented by trade, while others may face challenges adapting to the changes.