Trade and Jobs

… a core concept in Economic Analysis and Atlas102

Click for MRU video, Minutes 0.30 to 5:34

Click for MRU video, Minutes 0.30 to 5:34

Concept description

Alex Tabarrok (reference below, video on right, minutes 0.30 to 5:34) describes the impact of reducing trade barriers on jobs.

Tabarrok emphasises that the crucial fact that many opponents of freer trade do not recognize is that countries pay for their imports with exports, which means that in the medium term the new jobs created will be higher paying than the ones lost to foreign producers.

TradeAndJobs1Tabarrok notes that in a growing economy jobs are being destroyed all the time with or without free trade.

HistoryTradeJobsy

Practice questions

From http://www.mruniversity.com/node/201849, accessed 5 May 2016.

  1. Some people argue for protectionism by pointing out that other countries with whom we trade engage in “unfair trade practices,” and that we should retaliate with our own protectionist measures. One such policy is the policy of some countries to subsidize exporting industries. India, for example, subsidizes its steel industry. Who is hurt by this subsidy?

Atlas topic, subject, and course

Trade (core topic) in Economic Analysis and Atlas102 Economic Analysis.

Source

Alex Tabarrok, Arguments Against International Trade (14-minute video), Principles of Economics – Microeconomics, Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-microeconomics/arguments-against-trade, accessed 5 May 2016.

Page created by: Ian Clark, last modified 5 May 2016.

Image: Alex Tabarrok, minute 00:14 of Arguments Against International Trade (14-minute video), Principles of Economics – Microeconomics, Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-microeconomics/arguments-against-trade, accessed 5 May 2016.