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  • Shaking Up Trade Theory

    12/23/2004 4:18:12 PM PST · by ninenot · 135 replies · 1,436+ views
    Business Week ^ | 12/06/04 | Aaron Bernstein
    For decades economists have insisted that the U.S. wins from globalization. Now they're not so sure But the bulk of this work is labor-intensive and lower skilled and can be done more efficiently by countries that have an abundance of less-educated workers. in the long run a more disruptive trend may be the fast-rising tide of white-collar jobs shifting to cheap-labor countries. "...nobody has a clue about what the numbers are," says Robert C. Feenstra, [UC-Davis] -- competition is coming on in the products such as software. If the new competition drives down prices too much, U.S. export earnings will...