The owners of relatively scarce factors of production, like low-skilled workers in most countries, are often harmed by free trade agreements.

Question

Answer

Pro: 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.

Answer

Con: Many industries will benefit from regional advantages, cultural legacies, or technological advancements associated with specific goods, regardless of the relative scarcity of certain factors.

Is more trade always beneficial for countries?

The owners of relatively scarce factors of production, like low-skilled workers in most countries, are often harmed by free trade agreements.

Pros

Cons

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.

Many industries will benefit from regional advantages, cultural legacies, or technological advancements associated with specific goods, regardless of the relative scarcity of certain factors.

Selected claim, supporting its parent

The owners of relatively scarce factors of production, like low-skilled workers in most countries, are often harmed by free trade agreements.

Pro claim 1, children below

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.

Con claim 1, children below

Many industries will benefit from regional advantages, cultural legacies, or technological advancements associated with specific goods, regardless of the relative scarcity of certain factors.