The following quote describes Chinaʹs effect on world labor markets. Chinaʹs emergence as a great economic power has induced an epochal shift in patterns of world trade. Simultaneously, it has challenged much of the received empirical wisdom about how labor markets adjust to trade shocks. Alongside the heralded consumer benefits of expanded trade are substantial adjustment costs and distributional consequences. These impacts are most visible in the local labor markets in which the industries exposed to foreign competition are concentrated. Adjustment in local labor markets is remarkably slow, with wages and labor-force participation rates remaining depressed and unemployment rates remaining elevated for at least a full decade after the China trade shock commences. Exposed workers experience greater job churning and reduced lifetime income. At the national level, employment has fallen in the US industries more exposed to import competition, as expected, but offsetting employment gains in other industries have yet to materialize. (The China Shock: Learning from Labor-Market Adjustment to Large Changes in Trade by David H. Autor, David Born, and Gordon H. Hanson, Annual Review of Economics Vol.8:1-635, October 2016)
-Refer to the scenario above. Which of the following statements stands in contrast to the impact of trade with China experienced by some U.S. workers described in this quote?
A) Many workers displaced because of NAFTA?s passage soon found gainful employment.
B) While U.S. manufacturing employment declined due partly to trade with China, trade with the United States has almost certainly been good for Chinese producers and consumers.
C) In recent years (beginning in the 1990s) , trade has had a much more important effect on wages in the states than was observed before the 1990s.
D) Opening up an economy to trade clearly expands the pie, but some people might end up with a smaller piece than they used to have.
Correct Answer:
Verified
Q6: The figure below shows production possibilities curves
Q7: The figure below shows production possibilities curves
Q8: Suppose an economy produces only solar panels
Q9: The U.S. wheat market is represented by
Q10: The following figure shows the demand curve,
Q11: The following figure shows the demand curve,
Q13: According to Samuel Huntington, South Korea's economy
Q14: Which of the following statements correctly highlights
Q15: Which of the following statements correctly highlights
Q16: Institutional reversal refers to the fact that
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents