SSC
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Foreign Trade
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Increases choice of goods
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Decreases prices of goods
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Increases competition in the market
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Decreases earnings
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Explanation:
Detailed explanation-1: -Trade and Wages Because trade raises the amount that an economy can produce by letting firms and workers play to their comparative advantage, trade will also cause the average level of wages in an economy to rise.
Detailed explanation-2: -Workers in industries that are confronted by competition from imported products may find that demand for their labor decreases and shifts back to the left, so that their wages decline with a rise in international trade.
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