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In 1973, the U.S. Congress held hearings on the subject of free trade before voting on the 1974 Trade Reform Act. Lobbyists representing producers and

In 1973, the U.S. Congress held hearings on the subject of free trade before voting on the

1974 Trade Reform Act. Lobbyists representing producers and labor unions from 21 different

industries presented arguments to support their positions. The positions taken by capital

and labor are summarized as follows:

POSITIONS TAKEN BY CAPITAL AND LABOR (21 INDUSTRIES IN 1973)

Position of Labor

Position of capital ProtectionistFree-Trade

Protectionist141

Free-Trade1 5

1. Does the data in this table support the predictions of the Heckscher-Ohlin model with

respect to the politics of trade policy? Explain why or why not.

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