POLI 243 Chapter 2-16: Poli 243 Textbook Reading Notes
4 May 2017
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If more trade is created than diverted, the rta has liberalized trade. In order for cooperation to emerge in any society, people must be assured that cooperation on their part will be met by cooperation from others. In order to address this problem, societies create institutions. Model: the factor model suggests that the debate over trade policy is a conflict over the distribution of national income between american labor and american business. Instead factors are tied, or sector specific to the sector to which they are currently employed: thus, factors cannot easily move from one industry to another, geography of industry. Location of an industry also means that quitting a job in one industry to take a job in another requires workers to physically relocate: unrealistic, ex: auto worker from detroit relocating to silicon valley. Limited amount of channels through which actors can try to influence policy.
