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The government think-tank in a certain country notices increased movement of labor as a result of international trade. What could this be a sign of?

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Final answer:

Increased movement of labor as a result of international trade can be a sign of a shift in jobs towards industries where the country has a comparative advantage.

Step-by-step explanation:

The increased movement of labor as a result of international trade can be a sign of a shift in jobs towards industries where the country has a comparative advantage. When a country engages in international trade, it tends to specialize in the production of goods and services that it can produce more efficiently or at a lower cost compared to other countries. This specialization leads to the movement of labor towards industries where the country has a competitive edge.

For example, if a country has a strong agricultural sector and can produce agricultural products more efficiently, it may export agricultural goods to other countries. This increased trade in agricultural goods will lead to a higher demand for labor in the agricultural sector, causing workers to shift from other industries towards agriculture.

This phenomenon can also be observed in the case of countries with a strong manufacturing sector. If a country has a comparative advantage in manufacturing, it may export manufactured goods, leading to an increased demand for labor in the manufacturing industry.

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