What will happen, according to Paul Samuelson’s critique, if a rich country enters into a free trade agreement with a poor country?

A. Both the countries will incur losses due to the exchanges between them.

B. The productivity of the poor country will decline rapidly.

C. The poor country will rapidly improve its productivity.

D. Both the countries will garner benefits from the exchanges between them.

ANSWER:

C. The poor country will rapidly improve its productivity.