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Unformatted text preview: always net gains from trade. However, there may be specific losers for specific policies. Generally, the groups opposed to trade agreements are those who produce a domestic produce for which the U.S. does not have the comparative advantage. There may also be other arguments against free trade: some people lose their jobs (those in domestic industries for which the U.S. does not have the comparative advantage), culturally, some may desire to injure the economies of those countries that they consider enemies, etc. 3. Outsourcing occurs when a firm hires labor outside of the domestic country. Do you think that the same arguments can be made about policies limiting outsourcing as can be made about policies limiting trade? Why or why not? Yes. Those who lose jobs are injured and consumers of the product gain....
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This note was uploaded on 09/25/2009 for the course ECON 002 taught by Professor Mcleod,markpehlivan,ayseozg during the Fall '08 term at Pennsylvania State University, University Park.
- Fall '08