You are down at Esquimalt Lagoon near Royal Roads walking on the beach and chatting with a friend. She knows you are studying international economics and asks for your perspective on the recent rise of protectionist sentiment around the world, most notably in the United States. She also happens to work for a clothing manufacturing firm that is facing increasing competition from foreign companies, making her worried that her company will shut down and she will lose her job.

a. (4) Please explain her two reasons why free trade is good and protectionism is bad for

economies.

b. (4) She argues back by asking if trade is so good, why are so many people opposed to it? Please explain to her how and why some groups organize to oppose free trade.

c. (4) Now convinced by your brilliant explanations, she reluctantly admits that trade seems to be good in aggregate. However, your explanation does not help her personally. Please explain to her two steps she could take to adapt to the evolving economy.