Developed countries have a surplus in skilled labor. Therefore, people with higher levels of education are likely to support free trade, while those with lower skill levels are likely to oppose free trade.

Question

BlackTom AI · Accepted Answer

Heckscher-Ohlin theory and the Stolper–Samuelson theorem explain the core logic: countries export goods that use their abundant factor intensively, and trade raises the real return to the abundant factor while lowering the return to the scarce factor. For many developed countries the abundant factor is skilled labor (human capital). Therefore, opening to trade tends to increase demand and relative wages for skilled workers and to depress wages or job prospects for less-skilled workers.

Relevant knowledge points and concepts
- Heckscher-Ohlin (H–O) model: countries specialize in and export goods that intensively use their abundant factor.
- Stolper–Samuelson theorem: trade increases real returns to a country’s abundant factor and reduces real returns to its scarce factor.
- Political economy implication: groups that gain from trade tend to support it; those that lose tend to oppose it.

Step-by-step reasoning
1. Premise: developed countries are relatively abundant in skilled labor compared with developing countries.
2. Under free trade, developed countries specialize in skill-intensive goods and export them; import unskilled-labor-intensive goods.
3. This specialization raises demand for skilled labor in developed countries, increasing their relative wages and employment prospects (winners).
4. Conversely, increased imports of unskilled-labor-intensive goods and offshoring of low-skill tasks put downward pressure on wages and jobs for less-skilled workers (losers).
5. Political preference follows economic interest: higher-educated individuals (who gain) are more likely to support free trade; lower-skilled individuals (who lose) are more likely to oppose it.

Why the correct answer is correct
The statement is a direct implication of H–O and Stolper–Samuelson logic applied to developed countries with skilled-labor surpluses: higher-education individuals gain and therefore favor trade; lower-skill workers lose and oppose it.

Why the other option (False) is incorrect
Saying False would deny the predicted alignment of trade preferences with factor abundance and returns. While real-world factors (technology, redistribution policies, immigration) can moderate outcomes, the theoretical prediction and much empirical evidence support the True statement.

Conclusion
The correct answer is True, which matches the provided answer.

Developed countries have a surplus in skilled labor. Therefore, people with higher levels of education are likely to support free trade, while those with lower skill levels are likely to oppose free trade.判断题

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