Costs_of_Globalization__Lesson_13_

Costs_of_Globalization__Lesson_13_ - Some Costs of...

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1 Lesson 13 1 Some Costs of Globalization Job loss Income loss Economic insecurity Lesson 13 2 X Q Y Q Produce here with trade Consume here with trade Produce and consume here with autarky Lesson 13 3 The consumption frontier always passes through the production point The slope of the consumption frontier is X Y P P
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2 Lesson 13 4 What happens if resources are released from the import-competing sector more quickly than they can be absorbed into the export sector? For simplicity, assume that all workers are released from sector Y upon liberalization, but remain unemployed for several months before finding employment in sector X Lesson 13 5 X Q Y Q Ultimate consumption point Ultimate production point Production immediately following liberalization Lesson 13 6 X Q Y Q Ultimate consumption point Ultimate production point Consumption point immediately following liberalization
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3 Lesson 13 7 A period of transitional unemployment may
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This note was uploaded on 09/14/2009 for the course ECON 340 taught by Professor Leidholm during the Summer '08 term at Michigan State University.

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Costs_of_Globalization__Lesson_13_ - Some Costs of...

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