globalization
opponents is that falling barriers to international trade destroy manufacturing
jobs in wealthy advanced economies such as the United States and western Europe. The
critics argue that falling trade barriers allow firms to move manufacturing activities to countries
where wage rates are much lower. 45 Indeed, due to the entry of China, India, and states
from eastern Europe into the global trading system, along with global population growth,
estimates suggest that the pool of global labor may have quadrupled between 1985 and
2005, with most of the increase occurring after 1990. 46 Other things being equal, one might
conclude that this enormous expansion in the global labor force, when coupled with expanding
international trade, would have depressed wages in developed nations.
This fear is supported by anecdotes. For example, D. L. Bartlett and J. B. Steele, two journalists
for the Philadelphia Inquirer who gained notoriety for their attacks on free trade, cite the
case of Harwood Industries, a U.S. clothing manufacturer that closed its U.S. operations
globalizationopponents is that falling barriers to international trade destroy manufacturingjobs in wealthy advanced economies such as the United States and western Europe. Thecritics argue that falling trade barriers allow firms to move manufacturing activities to countrieswhere wage rates are much lower. 45 Indeed, due to the entry of China, India, and statesfrom eastern Europe into the global trading system, along with global population growth,estimates suggest that the pool of global labor may have quadrupled between 1985 and2005, with most of the increase occurring after 1990. 46 Other things being equal, one mightconclude that this enormous expansion in the global labor force, when coupled with expandinginternational trade, would have depressed wages in developed nations.This fear is supported by anecdotes. For example, D. L. Bartlett and J. B. Steele, two journalistsfor the Philadelphia Inquirer who gained notoriety for their attacks on free trade, cite thecase of Harwood Industries, a U.S. clothing manufacturer that closed its U.S. operations
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