POLI 243 Lecture Notes - Foreign Trade Of The United States
18 Mar 2013
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Document Summary
Why are people opposed to free trade when it is ostensibly beneficial. Assumes factors may move from one application to another with ease, at no cost. There is really one market for labour and one market for capital. Trade causes domestic prices to change; effect is passed on to returns earned by factors. Assumes factors can move from one application to another with great difficulty and only at high cost. How to take fisherman to convert to computer programmer. Trade causes domestic prices to change; effect is passed on to returns earned by factors, depending on which sector they are in. Stopler-samuelson because all workers will oppose free trade because free trade drives down wages. Application of the stopler-samuelson (ron rogowski) 1989, 50 year gap. American trade policy is shaped by sector based interests. Lobby groups but not a lot of class cleavages. Is one cleavage observed more often than the other.
