Firms will have a preference to hire workers in countries with an abundance of unspecialized labor, like China and Bangladesh, since the increased supply will lower the cost of labor, harming workers elsewhere.

Question

Answer

Pro: NAFTA led to lower wages and higher unemployment among low-wage US workers, as American firms were unable to compete with those making use of Mexican labor.

Is more trade always beneficial for countries?

Firms will have a preference to hire workers in countries with an abundance of unspecialized labor, like China and Bangladesh, since the increased supply will lower the cost of labor, harming workers elsewhere.

Pros

Cons

NAFTA led to lower wages and higher unemployment among low-wage US workers, as American firms were unable to compete with those making use of Mexican labor.

Selected claim, supporting its parent

Firms will have a preference to hire workers in countries with an abundance of unspecialized labor, like China and Bangladesh, since the increased supply will lower the cost of labor, harming workers elsewhere.

Pro claim 1

NAFTA led to lower wages and higher unemployment among low-wage US workers, as American firms were unable to compete with those making use of Mexican labor.