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What are the major forms of trade adjustment provided by the U.S. government? How does such assistance help bolster support for free-trade agreements? Do you think workers who lose their jobs because of changes in trade laws deserve special treatment relative to workers who lose their jobs because of other changes in the economy, say, changes in patterns of government spending?
11. What is offshoring of white-collar service jobs and how does that practice relate to international trade? Why has it recently increased? Why do you think more than half of the offshored jobs have gone to India? Give an example (other than that in the textbook) of how offshoring can eliminate some American jobs while creating other American jobs.
12. LAST WORD How does a fair-trade product differ from an otherwise imported good? What is the purported benefit of fair-trade certification on purchases of goods such as chocolate, coffee, bananas, and tea? Do fair trade goods improve average wage and level of income in low-income nations? Why or why not?
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Overhead costs are the source of product cost distortions. Do you agree or disagree? Explain.
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