Question

How is international trade, taken as a whole, likely to affect the average level of wages?

Short answer

International trade as a whole though shows the rise in the average level of wages but it also negatively impacts the infant industries.

Step-by-step solution

Step 1. Meaning of international trade.

It is an activity carried out by either countries or organizations to exchange products and services to boost their economy. It involves a scenario where a country simply because the production cost is high compared to importation cost or because the commodity is not available in the country.

Step 2. International trade likely to effect the average level of wages when taken as whole.

Considering the international trade as a whole, it shows positive approach towards the average level of wages as with increasing international trade the global average level of wages should raise by increasing productivity. Thus, by the increase in average wages, it gains both to workers in certain jobs and industries and losses to others.