Question

Do the jobs for workers in low-income countries that involve making products for export to high-income countries typically pay these workers more or less than their next-best alternative?

Short answer

Yes, they do pay higher.

Step-by-step solution

Step 1. Introduction

International trade refers to the exchange of goods, services, and resources between different countries. Comparative advantage helps low-income countries to trade with high-income countries.

Step 2. Explanation 

Comparative advantage in production makes it possible for low-income countries to produce and export certain products to high-income countries. The industries in low-income countries that produced goods and services for exporting often pay higher wages to the worker than in their alternative jobs.

This is because if they do not pay higher than the alternatives, these workers would choose to work at alternative jobs instead. Thus to retain workers these industries pay higher wages.