Classical theory may not care where the steel mills, chip foundries, shipyards, research labs, aircraft plants, oil fields, and supply chains are, but the real world of power politics does. I spent most of my time during 20 years in Washington, D.C. working in a bipartisan manner on trade policy with the aim of keeping here, then bringing back, strategic industries. There was then a coalition of national security Republicans (on my side of the aisle) and labor union Democrats. Democrats did not want to lose the middle-class blue-collar jobs when factories closed. Republicans did not want to lose the...