According to the Theory of Trade, If Two Countries Trade

Multiple Choice

According to the theory of trade, if two countries trade with each other:

A) consumption in one country will fall and wages will also fall.
B) wage costs will remain low if both countries specialize in producing the goods for which they have a comparative advantage.
C) trade raises the labor productivity and wages of both countries.
D) wages in the country with a comparative advantage will rise and wages in the country without a comparative advantage will fall.