Ch 5 Global Trade [AP & Reg]


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Unformatted text preview: ry and its suppliers. 2. Import quotas on Japanese autos preserved 4,598 American jobs. Counterpoint: That is half the story. Here is the rest of the story. Counterpoint: 1. The higher steel prices saved 17,000 jobs in the steel industry but led to the loss of 52,400 jobs in American steel­using industries. For every job saved, three were lost. 2. The import quotas on Japanese autos preserved 4,598 American auto jobs but at a cost to consumers of $241,235 per job per year, in higher prices paid for cars. Saving a 30,000 auto job cost consumers $120,000 annually in higher prices. . *The more you pay for protected goods, the less you have to use to buy other goods. The less consumers have to buy other goods, then fewer jobs will be created by the market. In the last few years, tariffs have preserved 3,500 steel jobs; by contrast tariffs have cost steel users between 12,000 and 43,000 jobs due to higher prices. Point: If we trade freely with low wage countries, U.S. businesses will flee to those countries and U.S....
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