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Unformatted text preview: Demand for scarce factor will fall Owners of scarce factor oppose free trade o Political problem: labor may benefit nation, yet harm some within it In labor-scarce countries, organized labor usually opposes free trade Labor is relatively scarce in the US, compared to Mexico AFL-CIO opposes President Clintons efforts to ratify the agreement, in spite of links to democratic party In labor-abundant countries, labor should usually favor free trade...
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- Spring '08