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Workers in importing industries are likely to oppose trade?

User YFeizi
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Final answer:

Workers in import-competing industries may oppose trade due to job risks, while workers in exporting countries might support it for employment benefits. This reflects the broader trade policy debate over protectionism versus liberalization.

Step-by-step explanation:

Workers in import-competing industries are likely to oppose trade because of the increased competition that could lead to job losses and wage reductions. An example of this is the sugar industry in a hypothetical Country A, which lacks a comparative advantage in sugar production. If trade barriers are removed and better quality, cheaper sugar comes in from other countries, Country A's sugar industry would struggle to compete and might eventually shut down, causing workers to lose their jobs. On the other hand, workers in Country C's sugar industry might support the removal of trade barriers because it allows them to sell their products internationally, which can lead to increased demand for their labor and possibly higher wages.

This dynamic illustrates a common tension in trade policy: protectionist policies may benefit local industries and their workers by shielding them from international competition, but such policies often lead to higher prices for consumers, who are a much larger but less organized group. Meanwhile, liberal trade policies can benefit consumers with lower prices and more choices, but may negatively impact certain domestic industries and their workers.

User RobJohnson
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