Question
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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