Final answer:
U.S. unions support fair trade as it allows domestic companies with skilled workers to compete effectively in global markets by promoting ethical trade practices and standards.
Step-by-step explanation:
U.S. unions believe that "fair trade" will ensure that domestic companies can compete effectively in global markets. The underlying premise is that fair trade agreements can incorporate protections like environmental standards, which not only benefit consumers who are willing to pay more for ethically produced goods but also benefit the workers with fair wages and conditions. Considering that American workers in certain industries possess above-average skills, fair trade can enhance their ability to succeed in the global market, especially when labor market frictions are low, allowing for a small impact on low-wage workers and more significant opportunities in various industries.
U.S. unions believe that fair trade will ensure that American companies can compete effectively in global markets. Fair trade promotes fair wages and working conditions for workers, protects the environment, and allows for sustainable economic growth.