Assertion (A) : Free international trade necessarily lowers the real wage of the scarce factor of production in terms of any good.Reason (R) : If the real wage declines in terms of every good, real income must suffer regardless of the tastes and expenditure patterns of the labourers as consumers.

International economics is concerned with the effects upon economic activity from international differences in productive resources and consumer preferences and the international institutions that affect them. Basicaly, International economics deals with issues arising from economic interaction among sovereign nations