Question

"Between 1980 and 2014, income inequality in the United States has increased in part due to expanding international trade. How does expanding international trade"?

Answer 1

option 2 is the answer - Domestic firms can hire low-skilled workers anywhere in the world.

Step-by-step explanation:

The increase in offshore activities and international trade leads to income inequality. When U.S trade with other countries that export goods to America, low-income workers in the sector that originally produced similar goods, face threats from competition.

Some domestic companies (mostly in the manufacturing sector), end up hiring foreign workers, who could do the same jobs as U.S citizens, but with lower wage requirement.

Answer 2

See explanation below.

Step-by-step explanation:

On this case we can conclude that the USA firms with this condition now can hire people with not qualifications anywhere in the planet, on this case this situation allos that the people from USA would be in competition with foreign workers.

And as a consequence we have that the wages sometimes are not equitative in som situations. And that's a competitiv situation on which the people from USA sometimes needs to accept lower wages in order to get a job in the country.