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6. Suppose that there are two commuting zones (CZs) in the United States called CZ-TN and CZ-CO. The US government notices that CZ-TN concentrates around
6. Suppose that there are two commuting zones (CZs) in the United States called CZ-TN and CZ-CO. The US government notices that CZ-TN concentrates around 7% of all manufacturing employment in the country while CZ-CO only has around 1% of all manufacturing jobs. The government expects a trade shock to happen very soon because it is secretly working on getting rid of many tariffs with a large number of manufacturing countries. Based on the numbers for manufacturing employment for the two commuting zones above, it is clear that CZ-TN will need a lot more help from the government than CZ-CO in order to adjust to the trade shock. True, false or uncertain? Explain. (7 points)
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