This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Cutting imports will lead to a fall in exports. 1. exports use importable inputs 2. foreigners who lose our business cannot buy so much from us 3. foreign governments may retaliate Therefore, raising trade barriers will bring a net loss of U.S. jobs. Lowering existing trade barriers will bring a net job loss because current barriers are concentrated in the most labor-intensive import competing industries such as textiles and footwear. Trade and Technology When a product is invented it needs to be perfected and requires advanced technological inputs. Production is best done in the country where the product was invented. Once a product becomes standardized and knowledge plays less of a role and production moves overseas eventually to cheap labor LDC's....
View Full Document
- Fall '09
- Personal Finance