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Isabella Porchia
on Nov 17, 2024

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Free trade causes job losses in industries in which a country does not have a comparative advantage, but it also causes job gains in industries in which the country has a comparative advantage.

Free Trade

The economic policy of not discriminating against imports from and exports to foreign jurisdictions, allowing goods to move across borders without regulatory or tariff barriers.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its competitors, underpinning the rationale for international trade.

Job Losses

The act of becoming unemployed due to factors like economic downturns, restructuring, or automation.

  • Comprehend the association between comparative advantage and the outcomes of trading activities.
  • Analyze the influence of trading activities on labor markets from the perspective of comparative advantages.
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Elizabeth PfliegierNov 18, 2024
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