Why would a country opt for free trade when some workers remain unemployed in the import-competing sector?

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Why would a country opt for free trade when some workers remain unemployed in the import-competing sector? Given the real wage rate in Thailand is higher than that in Bangladesh, how would international trade affect real wages between them under a perfectly mobile labor movement?

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International Economics Theory And Policy

ISBN: 9781292409719

12th Edition

Authors: Paul Krugman , Maurice Obstfeld, Marc Melitz

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