Free trade paradox.

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Chapter 7, Problem 7.3.8PA

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Free trade paradox.

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Listen carefully to the podcast titled 'Is America losing faith in Free Trade?. What would help explain why support for trade liberalisation in places such as the United States has decreased in the past decade even though economists argue free trade is beneficial for the economy? The benefits and costs of trade are unequally distributed within society. The benefits of free trade tends to fall on people who are less well off, who either lose their jobs or lose wages to other countries which angers the wealthy investors. O The wage gap between high and low-skilled workers is closing which decreases levels of productivity. The benefits of free trade tend to fall on people who are less well off, who either lose their jobs or lose wages to other countries.