Question
Most economists are optimistic about free trade. Ricardo showed that trade based on the principle of comparative advantage yields higher level of outputandconsumption.Hismajor assumption was
Most economists are optimistic about free trade. Ricardo showed that trade based on the principle ofcomparative advantageyields higher level of outputandconsumption.Hismajor assumption was that factors of production (capital, labor, technology)could not move across the borders. But resources does shift around the world. American companies have engaged inoutsourcing(offshoring)-- subcontracting work to a foreign companies or purchasing components vs manufacturing them at home. This is the form of specialization and trade. Some jobs in the U.S., such as medical technicians, call-center agents, software programmers, are at risk because of outsourcing. It benefitsworkers in China, India. Read thisarticleand watch thisvideoand comment on both.
https://fee.org/articles/outsourcing-is-bad#axzz2a7ZdsTTn
https://www.youtube.com/watch?v=TCc19xxqr_I
Do you agree with the author of the article? Why or why not? Does loss of jobs for some U.S. workers weaken the case for free trade?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started