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Many people believe that because wages are lower in
develo countries than in developed countries, competition 1. The primary purpose of the passage is to
from develo countries in goods traded internationally will
soon elimina arge numbers of jobs in developed countries. ▪ (A) identify the origin of a common
Currently, developed countries advanced technology results misconception
in higher productivity, which accounts for their higher wages.
Advanced technology is being transferred ever more speedily ▪ (B) discuss the implications of a
across borders, but even with the latest technology, generally accepted pr iple
productivity and wages in develo countries will remain
lower than in developed countries for many years because ▪ (C) present information relev
developed countries hav ter infrastructure and better-
educated workers. When productivity in a develo country evaluating a commonly held belief
does catch up, experience suggests that wages there will
rise. Some individual firms in develo countries have ▪ (D) defend a controversial assertion
raised their productivity but kept their wages (which are a variety of coun rguments
influenced by average productivity in the countrys economy)
low. However, in a develo countrys economy as a whole, ▪ (E) ex in under what circumstances a
productivity improvements in goods traded internationally are
likely to cause an rease in wages. Furthermore, if wages well-known phenomenon occurs
are not allowed to rise, the value of the countrys currency will
appreciate, which (from the developed countries point of
view) is the equivalent of reased w
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