Which of the following is NOT mentioned by Professor Cowen as one of the benefits of international trade?

• A. Trade can lead to lower prices for consumers.
• B. Trade increases the variety of goods available to consumers.
• C. Trade allows countries to specialize in the production of goods where they have a comparative advantage.
• D. Trade guarantees equal income distribution among all trading nations.

Answer: (D)

Verified step by step guidance

1. Understand the context: The question asks which statement is NOT mentioned as a benefit of international trade by Professor Cowen. This means you need to identify the option that does not align with the typical economic benefits of trade.
2. Recall the common benefits of international trade: These usually include lower prices for consumers due to increased competition and efficiency, greater variety of goods available because countries import products they do not produce domestically, and specialization based on comparative advantage which leads to more efficient production.
3. Analyze each option: Compare each statement to the known benefits of trade. The first three options align with standard economic theory and are commonly cited benefits.
4. Identify the incorrect statement: The last option, 'Trade guarantees equal income distribution among all trading nations,' is not a recognized benefit of trade. Trade can affect income distribution, but it does not guarantee equality.
5. Conclude that the correct answer is the statement about income distribution, as it is not mentioned by Professor Cowen as a benefit of international trade.