Between 1976 and 2010, Income Inequality in Canada Has Increased

Multiple Choice

Between 1976 and 2010, income inequality in Canada has increased in part due to expanding international trade.How does expanding international trade contribute to income inequality?

A) It increases the demand for a wide array of products which in turn increases prices beyond the reach of average income individuals.
B) It allows producers to exploit workers and reduce the wages they are willing to pay workers.
C) Domestic firms can now hire low-skilled workers anywhere in the world, putting Canadian workers in competition with foreign workers. This has caused the wages of unskilled workers to be depressed relative to the wages of other workers.
D) It reduces the cost of producing goods and therefore lowers the value of labour's services.