Trade Agreements

Self-Check Questions

1. Explain how trade barriers save jobs in protected industries, but only by costing jobs in other industries.
2. Explain how trade barriers raise wages in protected industries by reducing average wages economy-wide.
3. How does international trade affect working conditions of low-income countries?
4. Do the jobs for workers in low-income countries that involve making products for export to high-income countries typically pay these workers more or less than their next-best alternative?
5. How do trade barriers affect the average income level in an economy?
6. How does the cost of "saving" jobs in protected industries compare to the workers' wages and salaries?